Bitcoin (BTC) has once again surpassed the $100,000 mark, but there are concerns about declining buying pressure. Despite breaking through this significant resistance level, there has been a noticeable decrease in purchasing activity.
Therefore, the question arises – Could this diminished buying pressure potentially lead to a drop in BTC’s price in the upcoming days?
Current Status of Bitcoin
As of the latest updates, the dominant cryptocurrency was trading at $101.9k, commanding a market capitalization exceeding $2 trillion. This comes after a brief dip below $97.5k in the past 48 hours.
Subsequently, Santiment, a renowned data analytics platform, reported a lack of active buy calls on social media as the week concluded. This data could be crucial in determining the optimal moments to purchase (during periods of panic) and sell (during periods of greed) in anticipation of Bitcoin’s future price movements.
Analysis from CryptoCrypto revealed a recent decrease in BTC’s exchange reserves, indicating a surge in buying pressure. Concurrently, the cryptocurrency’s supply off exchanges also dwindled, implying a decrease in selling pressure.
Projections for BTC’s Future
Additionally, data from CryptoQuant highlighted a downward trend in Bitcoin’s exchange reserves, reinforcing the notion of heightened buying pressure.
Furthermore, Bitcoin’s Rainbow chart showcased another positive indication, suggesting that BTC is still following an accumulation trend. This points towards a potential price surge in the near future.
However, the fear and greed index signaled a phase of “greed” in the market over the past 24 hours, hinting at a probable price correction. To counter this, CryptoCrypto examined Bitcoin’s daily chart and observed an increase in the Money Flow Index (MFI), signaling a rise in buying pressure. Sustained buying momentum could propel Bitcoin’s price beyond $102,000 soon.
It is essential to note, though, that the Chaikin Money Flow (CMF) displayed a downward movement, which might hinder Bitcoin from making significant upward advances.