In recent days, Bitcoin [BTC] has encountered some challenges, with its price dipping below $64k. However, investors need not despair, as there are indications that the dominant cryptocurrency could be gearing up for a potential upward trajectory in the near future.
The hidden bullish momentum of Bitcoin
Over the past few days, BTC has witnessed notable fluctuations, once again dropping below the $64k threshold.
Currently, the flagship cryptocurrency is trading at $63,952.64, boasting a market capitalization exceeding $1.2 trillion. Despite recent setbacks, there are signs suggesting that Bitcoin might be readying itself for a significant surge in the upcoming week.
A recent tweet by CryptoQuant unveiled an interesting observation about the low exchange flow multiples preceding the 2023 rally, hinting at a potential positive market trend. Regarding this, the tweet mentioned,
“The current low levels of this indicator could suggest a possible upcoming uptrend in the market.”
As a result, CryptoQuant is inclined to delve deeper into market sentiment to ascertain whether an impending price boost is in store.
Is Bitcoin poised for a price uptick?
Based on our analysis of CryptoQuant’s data, Bitcoin’s Exchange Reserve has been diminishing, signaling an increase in buying pressure on the cryptocurrency. Elevated buying pressure typically foretells a potential price upsurge.
Furthermore, Bitcoin’s Binary CDD also exhibited bullish traits, indicating that the movement of long-term holders in the past week was below average, symbolizing their intent to retain their holdings.
Moreover, miners have been accumulating their Bitcoin reserves, as evidenced by the Miners’ Position Index (MPI) reflecting a moderate level of sell-offs compared to its one-year average.
Given the positive outlook from on-chain metrics, CryptoQuant intends to analyze Bitcoin’s daily chart. Our evaluation reveals that BTC has been struggling to breach its crucial resistance at $65k.
The resistance encountered could be a contributing factor to Bitcoin’s consolidation phase and its subsequent attempt to breach the resistance barrier yet again.
If a bullish breakout materializes, it wouldn’t be surprising to witness Bitcoin climbing towards $73k. Surpassing this milestone could pave the way for the cryptocurrency to retest or even surpass its previous all-time high in the weeks or months ahead.