Key Points
- Bitcoin’s buying pressure has increased, indicating a potential price rise.
- Bitcoin’s on-chain metrics and Exchange Reserve data suggest a bullish trend.
Bitcoin’s [BTC] value has dipped below the $64k mark recently, causing concern among investors. However, there may be a silver lining as indicators suggest the king coin could rise again in the near future.
Bitcoin’s Potential Bullish Turn
Bitcoin’s volatility has been significant, with the coin’s value currently sitting at $63,952.64 and a market capitalization exceeding $1.2 trillion. Despite the recent dip, data suggests Bitcoin may be preparing for a bullish move.
CryptoQuant’s recent tweet highlighted that low exchange flow multiple values were noted prior to the 2023 rally. The current indicator levels are similarly low, suggesting a possible upward trend in the market.
Increasing Buying Pressure
Our analysis of CryptoQuant’s data indicates that Bitcoin’s Exchange Reserve is decreasing, suggesting increased buying pressure. Such an increase often precedes a price rise. Additionally, Bitcoin’s Binary CDD appears bullish, showing that long-term holders’ movement in the past week has been below average, indicating a tendency to hold onto their coins.
Miners are also holding onto their coins, as evidenced by the Miners’ Position Index (MPI). This shows that miners are selling holdings within a moderate range compared to the one-year average.
Despite these positive on-chain metrics, Bitcoin has struggled to surpass its crucial resistance of $65k. This resistance may be causing Bitcoin’s consolidation and attempts to approach the resistance again. However, if a bullish breakout occurs, Bitcoin could potentially reach $73k. A leap beyond that mark could pave the way for Bitcoin to achieve a new all-time high in the coming weeks or months.