Kiyosaki Sounds Alarm While Bitcoin Smashes Through Key Resistance Levels

• Bitcoin trades at $121,695, but capital inflows dropped to $51 billion compared to $135 billion during December’s rally from $55,000 to $100,000.

• Robert Kiyosaki bought more Bitcoin but warned against excessive greed and noted Warren Buffett’s $350 billion cash reserve as a signal of institutional caution.

• Technical analysis shows Bitcoin broke above $113,000 in a bullish flag pattern with little resistance until $130,000, though $85,000 remains key support.

Bitcoin has reached a new milestone, trading at $121,695 and continuing its impressive rally beyond $122,000. The cryptocurrency market’s flagship asset remains the most closely watched investment vehicle, though underlying market conditions reveal a more complex picture.

The current price surge represents a significant achievement for Bitcoin, reinforcing its dominance in the digital asset space. However, market analysts highlight important shifts in investor behavior and capital flows that suggest a more cautious approach may be warranted.

Expert Warnings Amid Record Highs

Robert Kiyosaki, author of Rich Dad Poor Dad, recently purchased additional Bitcoin while signaling a strategic pause in his accumulation strategy. Kiyosaki confirmed he added to his Bitcoin holdings but stated he will not make further purchases until economic conditions become clearer.

The investment educator emphasized the importance of avoiding excessive greed, referencing the traditional market warning that “pigs get fat, but hogs get slaughtered.” His cautionary stance reflects broader concerns about market timing and the risks of overextension during volatile periods.

Kiyosaki also pointed to Warren Buffett’s substantial $350 billion cash reserve as a potential indicator of institutional caution. This cash position could signal that major investors are positioning for market corrections before deploying significant capital.

Market analyst Ali Martinez identified a striking contrast in Bitcoin’s recent performance patterns. In December 2024, Bitcoin’s rise from $55,000 to $100,000 was supported by $135 billion in capital inflows. The current rally to $118,000 has generated only $51 billion in inflows.

This significant difference in capital deployment suggests increased investor caution or more strategic positioning by institutional players. The lower inflow levels could indicate investor fatigue or broader economic uncertainty affecting market participation.

Martinez highlighted $85,000 as a critical support level for Bitcoin, with potential resistance exceeding $120,000. This price range may determine the cryptocurrency’s next directional move. A failure to maintain momentum could trigger a correction, while renewed inflow strength might fuel another rally phase.

Technical Analysis Points to Continued Strength

Despite cautionary signals from market flows, Bitcoin’s technical outlook remains constructive. Analyst CryptoJelleNL noted Bitcoin’s successful breakout from a bullish flag formation above $113,000, indicating strong upward momentum with minimal resistance until the $130,000 level.

The breakout occurred with little pullback, suggesting firm market confidence among active traders. As long as Bitcoin maintains levels above $113,000, the technical trend remains intact, potentially offering opportunities for buyers during temporary price dips.

The combination of technical strength and reduced capital inflows creates an interesting dynamic. While the price action suggests continued bullish sentiment, the lower participation levels indicate a more selective approach from investors.

The current Bitcoin rally to $121,695 demonstrates the cryptocurrency’s continued appeal despite changing market conditions. The divergence between price performance and capital flows suggests a maturing market where strategic positioning precedes momentum-driven accumulation.

Investors are navigating between technical optimism and fundamental caution. The reduced inflow levels and expert warnings about market timing suggest a more measured approach to Bitcoin investment may be appropriate.