Key Points
- Bitcoin’s supply on exchanges has decreased, indicating a rise in buying pressure.
- The Money Flow Index (MFI) shows an uptick in buying pressure, potentially leading to a price increase.
Bitcoin [BTC], the leading cryptocurrency, has managed to climb above $100k. However, despite surpassing this significant resistance level, the buying pressure seems to be relatively low. This raises a question: Could this low buying pressure result in a drop in BTC’s price in the near future?
Bitcoin’s Current Market Status
At the time of reporting, Bitcoin was trading at $101.9k, boasting a market capitalization of over $2 trillion. This comes after a brief dip below $97.5k within the last 48 hours. Data analytics platform, Santiment, noted a decrease in buy calls on social media as the week ended. This chart could be instrumental in predicting Bitcoin’s next significant price swing.
Furthermore, BTC’s supply on exchanges has also seen a decline in recent days. This suggests that buying pressure on Bitcoin is increasing while the coin’s supply outside of exchanges is decreasing, indicating a decrease in selling pressure.
What’s Next for Bitcoin?
In addition, BTC’s exchange reserves have been dwindling, according to data from CryptoQuant. This further supports the notion of increased buying pressure. The Bitcoin Rainbow chart also provides a positive signal, indicating that BTC remains within the accumulation trend, suggesting a potential further price increase in the upcoming days.
However, the fear and greed index shows that the market has been in a “greed” phase over the last 24 hours, suggesting a potential price correction. Upon analyzing Bitcoin’s daily chart, an uptick in the Money Flow Index (MFI) was observed, indicating a rise in buying pressure. If this uptick in buying sustains, Bitcoin might soon surpass $102k. However, the Chaikin Money Flow (CMF) has moved south, which could potentially hinder Bitcoin’s progress.
