Bitcoin investors saw significant gains in the past week with the coin’s price surging by a substantial margin. This surge in price led to a surge in positive sentiment surrounding Bitcoin, resulting in a notable decrease in the supply of Bitcoin on exchanges. Could this pave the way for further price increases in the near future?
Rising Interest from Investors
Recent data from CoinMarketCap indicates that Bitcoin experienced an impressive price increase, rising by over 11% in the past week. At the current moment, Bitcoin is being traded at $67,866.54, boasting a market capitalization exceeding $1.34 trillion.
Prior reports from CryptoCrypto hinted at a potential move for Bitcoin above the $67,000 mark. With the latest surge in price, more than 50 million Bitcoin addresses now hold profitable positions, accounting for more than 94% of all Bitcoin addresses.
During this period, a key metric for Bitcoin hit a five-year low as the supply of Bitcoin on exchanges dropped significantly. This decline in the supply indicates a notable increase in investor interest in buying Bitcoin in anticipation of potential future price gains.
As a result, CryptoCrypto delved into additional datasets to gauge the level of buying pressure surrounding Bitcoin.
Future Trajectory of Bitcoin
An evaluation of CryptoQuant’s data by CryptoCrypto highlighted the increasing interest in acquiring Bitcoin among investors. The sharp decline in Bitcoin’s exchange reserves over recent months clearly signals investors’ strong interest in acquiring the cryptocurrency.
Long-term holders are notably opting to retain their Bitcoin holdings, as evidenced by the positive trend in Bitcoin’s green binary Coin Days Destroyed (CDD) metric. Moreover, the derivatives market also reflects optimistic trends, with rising funding rates indicating dominance among long position traders willing to pay short traders.
Conversely, US investors appear to display a different sentiment, as indicated by a low Coinbase premium, implying prevalent selling pressure among US-based investors. A potential increase in selling pressure could potentially halt Bitcoin’s ongoing bullish rally.
Given these contrasting perspectives, CryptoCrypto aims to conduct an in-depth analysis of Bitcoin’s daily chart to ascertain its potential trajectory. Current insights suggest that Bitcoin is currently testing resistance at the $68,000 level, with market indicators hinting at a possible rejection.
Various indicators, such as Bitcoin’s price nearing the upper Bollinger Bands limit, often triggering corrective price actions. Additionally, the Relative Strength Index (RSI) is on the verge of entering the overbought zone, signaling a likely increase in selling pressure which could lead to a price correction in the days ahead.