Key Points
- Bitcoin’s rising Cumulative Volume Delta (CVD) and the $81K price level suggest a strong support zone.
- Market dynamics and upcoming events may influence Bitcoin’s trajectory towards a six-figure target or retracement to the $78K-$81K range.
The recent price action and increase in Cumulative Volume Delta (CVD) for Bitcoin suggest that the $81K level could serve as a robust support zone.
However, the final outcome will depend on the prevailing market dynamics.
Bitcoin Market Sentiment
The latest CVD and 24-hour price change analysis show a bullish sentiment in the Bitcoin market.
CVD, an important on-chain metric, monitors the net difference between buying and selling pressure over time.
Recent trading sessions have seen a noticeable uptick in Bitcoin’s CVD, indicating that buying pressure is currently dominating.
This surge in CVD coincides with Bitcoin’s $81K price level, sparking speculation that this zone could serve as a local bottom for Bitcoin’s next upward move.
Bitcoin’s Local Bottom
Bitcoin had a turbulent week, with its price dipping to $78K, rallying to $94K, and then retracting to $84K.
The market is still reacting to Trump’s ‘trade-dump,’ and another pullback remains a strong possibility.
However, a key bullish signal emerged when the CVD spiked as Bitcoin hit $81K.
In the previous cycle, a similar spike at $78K preceded a 20% rally, pushing Bitcoin above $96K.
Further supporting the bullish sentiment, total exchange outflows surged to a three-week high of 75,688 BTC, indicating aggressive “dip-buying” at this critical support level.
At present, Bitcoin is up 3.96% to $87,241, and in the past 24 hours, short positions worth $96.16 million have been liquidated in anticipation of $100K builds.
With the upcoming Crypto Summit and sustained buying pressure reflected by the CVD, Bitcoin might be preparing for a decisive move towards its six-figure target.
Resistance Ahead
If history repeats itself, the CVD, identifying a strong support zone in the $78K–$81K range, suggests a potential 20% rebound, positioning Bitcoin above $97K.
This level holds key significance, with 4.09 million BTC accumulated at an average price, as indicated by the largest red cluster in the chart.
The investor HODLing sentiment faces a crucial test, as the likelihood of mass liquidations increases once Bitcoin breaches resistance.
The outcomes from the summit will determine the next move.
A pro-Bitcoin stance, possibly including an executive order for a Bitcoin Strategic Reserve, could turn $97K into strong support.
This would pave the way for a breakout towards $100K.
On the other hand, intensified profit-taking may lead Bitcoin to retrace to the $78K–$81K range, further impacted by macroeconomic factors.
Inflation rose 0.1% month-over-month to 3% in January, exceeding the Fed’s 2% target.
Trump’s trade policies could also add upward inflation pressure, impacting HODLing sentiment.
Given the high volatility, closely monitoring resistance and support levels will be crucial in the coming days.