$55K Before $100K: Why Bitcoin's Price May Need to Hit New Lows First

Bitcoin's price has been stagnant around $65K, but some analysts believe it may need to hit $55K first before a potential run towards $100K. A recent report from Cryptonews.net suggests that Bitcoin's technical setup is playing out in real-time, with the backdrop tilting towards a bullish scenario.

The report notes that macro uncertainty has eased, and oil prices have resumed their downtrend after Q1's nearly 70% rally. This shift could be contributing to Bitcoin's resilience, as investors become more willing to rotate back into risk assets.

However, on-chain signals suggest that institutional capital is yet to show a strong dip-buying response, with $BTC ETFs continuing to record net outflows. Additionally, the CryptoQuant report shows that Bitcoin may be entering a zone that has historically marked bottom formation, but its STH MVRV index points more towards capitulation than confirmation.

The report concludes that Bitcoin's on-chain data and high Open Interest still look weak, despite improving macro conditions. This mismatch supports a view of a possible drop towards $55K first to reset positioning, before any move higher towards $100K.