Bitcoin (BTC) has crossed the $95,000 mark, demonstrating confidence among long-term holders. On-chain data indicates a sharp decrease in exchange inflows, hitting a seven-year low. This situation may support BTC in reaching $100,000 as demand rises and sell-side pressure reduces. Key indicators like the Taker Buy Sell Ratio and Elder-Ray Index display bullish trends, though profit-taking could trigger downward movements if it occurs.
Bitcoin (BTC) is picking up momentum, recently breaching the $95,000 barrier. This surge is largely credited to rising confidence among long-term holders. With current indicators pointing towards reduced outflows from exchanges, BTC seems poised for a major milestone—potentially reaching the coveted $100,000 mark.
Recent data from CryptoQuant reveals a noteworthy decline in the number of unique wallet addresses sending BTC to exchanges: it has plummeted to its lowest level in seven years, now at just 19,282 addresses, representing a staggering drop of over 60% in just a month. This dip in exchange inflows often signals less selling pressure, hinting at a strengthening bullish sentiment within the market.
Historically, such low inflows have coincided with significant price rallies. When selling activity wanes, it generally tightens the coin’s availability on trading platforms, which, in turn, tends to push prices up. More good news for Bitcoin investors: a noticeable increase in the Taker Buy Sell Ratio on Binance further bolsters this bullish outlook. Analyst Amr Taha remarked that the latest figures hit a notable high of 1.142, suggesting buyers are outpacing sellers.
The Taker Buy Sell Ratio is essential in assessing market sentiment; a value over one indicates the market is favouring buys over sells, suggesting a demand-driven atmosphere. The current uptick on Binance, being the largest crypto exchange by trading volume, is indicative of healthy demand for BTC. If these trends persist, the price could rise even further.
In terms of market sentiment and technical analysis, indicators like the Elder-Ray Index support the bullish view on Bitcoin. Recent charts reveal that the histogram bars of this indicator have seen consistent growth over the past days, hinting at mounting buying pressure. The Elder-Ray Index calculates buying and selling strengths, with larger, positive bars in this context suggesting a robust uptrend for BTC.
Should the upward momentum carry on, BTC might break past the $98,983 resistance level and push towards the much-talked-about $100,000 threshold and maybe even $101,070. Yet, there’s always risk in trading; if profit-taking kicks in, that bullish outlook could flip, leading Bitcoin back to lower levels, potentially down to $91,851 if it falls below $95,971.
In conclusion, while current figures provide a positive view on Bitcoin’s performance, market watchers know to tread carefully and keep an eye on potential reversal points.
