Key Points
- Bitcoin’s buy walls have gained significant strength across all exchanges, indicating robust demand.
- Bitcoin’s price is stabilizing as buy walls outweigh sell walls, signaling potential for further upward momentum.
Recent data from CryptoQuant suggests that Bitcoin‘s buy walls have grown significantly strong across all trading platforms.
These buy walls are now powerful enough to counterbalance the selling pressure, indicating that the market is on the path to recovery. This data insinuates a solid demand for Bitcoin, sufficient to absorb the selling volume that could otherwise continue to depress prices.
Trend Reversal in Bitcoin’s Market
A chart covering the period from early 2023 to mid-October 2024 reveals that Bitcoin faced severe selling pressure over the past few months. However, recent weeks have demonstrated a reversal in this trend.
As of October 12, Bitcoin’s buy walls reached a strong level of 895 million while sell walls decreased to zero. This suggests that buyers are ready to step in at crucial levels, with the recent decline in exchange reserve validating this trend.
The robust buy walls also indicate growing confidence in the market. When buy walls surpass sell walls, prices usually stabilize or increase. If this trend continues, Bitcoin could experience more upward momentum, depending on liquidity and investor sentiment.
Bitcoin’s Performance and Market Indicators
Interestingly, after a challenging Sunday, Bitcoin started the new week on a positive note. Bitcoin’s value increased by 2.80% in the previous 24 hours and is trading at $64,630 at the time of writing.
The MACD indicator has recently turned bullish, signaling a resurgence of buying momentum. Bitcoin faces substantial resistance at the upper Bollinger Band of $66,325. If it manages to break above this level, it could push towards $68,000 or higher in the short term.
On the other hand, the 20-day moving average provides support at $62,832, with the lower Bollinger Band at $59,338 offering additional support. Considering the bullish MACD crossover and the recent increase in buy walls, Bitcoin seems well-positioned for further upside, provided it can surpass its current resistance.