Following a brief stint above the $64,000 threshold on September 23rd, Bitcoin (BTC) has dipped below that mark once again. However, it has come to light that there has been a notable surge in buying pressure on the digital asset. The real question now is: how will this heightened activity impact the price movement of BTC moving forward?
Resurgence in Bitcoin Acquisition
After a period of anticipation, BTC briefly breached the $64,000 barrier before retracing back below it. Recent analysis has pointed towards a significant increase in buying pressure.
Analyzing the monthly price chart of BTC, popular crypto analyst Ali shared insights indicating that investors were actively accumulating the coin.
The examination of data from CryptoQuant by CryptoCrypto further confirmed this upward trend in buying pressure. Comparing Bitcoin’s net deposit on exchanges revealed a decrease from the average of the past seven days, signaling a rise in demand for the flagship cryptocurrency. Additionally, the BTC Miners’ Position Index (MPI) was in a favorable position, and the Coinbase premium hinted at strong buying sentiment among US investors. Typically, heightened buying pressure is linked to upward price movements.
Prospects for Bitcoin’s Price Movement
Despite the increased buying activity, certain metrics suggest the potential for a price correction. Glassnode’s data revealed a significant uptick in BTC’s Network Value to Transaction (NVT) ratio, indicating a possible overvaluation leading to a market correction.
Moreover, examinations by CryptoCrypto unveiled that Bitcoin’s Relative Strength Index (RSI) had entered the overbought territory, along with the stochastic indicator. These combined factors raise the likelihood of an impending price correction in the days ahead.
Yet, the fear and greed index for Bitcoin currently signals ‘fear,’ an indication that often heralds a price uptrend. Consequently, keeping a close eye on BTC’s daily chart can provide valuable insights into the future behavior of the cryptocurrency.
Present assessments suggest that Bitcoin is once again approaching a key resistance point at $64,100, with positive indicators such as a bullish MACD and an upward Chaikin Money Flow (CMF) potentially paving the way for a successful breakthrough. If achieved, BTC could set its sights on the $68,000 mark in the near term.
However, in the event of a bearish reversal, market participants should brace for the possibility of Bitcoin retracing back to $57,000.