Key Points
- Bitcoin’s buying pressure remains high, suggesting a potential price increase.
- Bitcoin’s liquidations are predicted to surge once it reaches the $77,000 mark.
The cryptocurrency market has been on a bullish trend since the U.S presidential elections, with Bitcoin (BTC) reaching a new all-time high. Despite a slight correction, the cryptocurrency continues to trade near this high range.
Investor confidence in Bitcoin appears to be strong, which could potentially drive the price further up in the future.
Increasing Bitcoin Accumulation
Bitcoin achieved a historic high of $76,849 on 7 November. Although the price has dipped slightly since then, it is currently trading at $76,422.29 with a market capitalization of over $1.5 trillion.
Despite this small decrease, optimism around Bitcoin remains high. Recent data reveals that over 57,800 BTC have gone into accumulation addresses in recent days, representing more than $4 billion.
This suggests that addresses holding significant amounts of BTC are anticipating a price rise, which could potentially see Bitcoin retesting its all-time high.
Market Sentiment and Future Predictions
Analysis of market data shows that Bitcoin’s exchange reserves are falling, indicating that investors are considering buying the cryptocurrency. Additionally, Bitcoin’s Coinbase premium is green, suggesting strong buying sentiment among U.S investors.
However, not all metrics are pointing towards a bullish future for Bitcoin. For instance, Bitcoin’s aSORP turned red, indicating that more investors are selling at a profit. Additionally, Bitcoin’s binary CDD suggests that long term holders’ movement over the past week has been higher than average, which if moved for selling purposes, could negatively impact the market.
Looking at Bitcoin’s liquidation heatmap, it appears that large-scale liquidation could be on the horizon once Bitcoin crosses the $77k mark. This could trigger a price correction before it tests its all-time high again.
The future of Bitcoin’s price largely depends on the continuation of accumulation and the preservation of bullish sentiment. If these factors remain intact, Bitcoin’s chances of hitting a new all-time high could be high.