Reduced Bitcoin exchange inflows indicate potential surge toward $100,000 mark.
Bitcoin's (BTC) value surged past the $95,000 mark on Thursday, fueled by a spike in long-term holder confidence. This burst of optimism could soon lead BTC to reclaim the coveted $100,000 price point.
The Exchange Sell-off Slows Down
On-chain data from CryptoQuant indicates a slowdown in the inflow of Bitcoin to exchanges, as the number of unique wallet addresses transferring BTC to exchange platforms has slumped to its lowest point since 2017, settling at 19,282 addresses. This decline represents a decrease of over 60% in just one month.
This development, typically interpreted as a reduction in sell-side pressure, underscores the current bullish sentiments within the Bitcoin market. Historically, low inflow levels have been associated with impressive price surges, as diminished selling activity results in a tighter supply of Bitcoin on exchange platforms, thereby boosting its value.
Trading Platform Activity Heats Up
Simultaneously, the increased Bitcoin Taker Buy Sell Ratio on the prominent cryptocurrency exchange Binance bolsters this optimistic narrative. As observed in a recent report, this metric recently soared to a staggering high of 1.142, marking the highest level in this range.
This ratio measures the ratio of buy orders executed against sell orders in the futures market. A ratio below one generally indicates increased sell orders, suggesting a shift toward bearish market sentiments. Conversely, a ratio above one indicates that more buy orders are being placed compared to sell orders, implying a demand-driven market.
The rising ratio on Binance is particularly noteworthy, as it signifies steadily growing demand for Bitcoin on the largest cryptocurrency exchange in terms of trading volume. If this trend continues, Bitcoin's price might continue to climb.
Bitcoin on the Verge of $100,000
On the technical side, readings from Bitcoin's Elder-Ray Index support the rising demand for the coin. The expanding size of the bars in this indicator suggests an increasing buildup of buying pressure in the market. This index measures the market's buying and selling pressure, with larger bars and positive values pointing to strong buying pressure and an uptrend with increasing strength.
If this trend persists, Bitcoin could easily break through the resistance at $98,983, reclaim the $100,000 milestone, and head towards the $101,070 mark. However, if profit-taking activity resumes, this optimistic projection could be thwarted, leading Bitcoin to dip below $95,971 and trend downward towards $91,851.
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Please note that this information is intended for informational purposes only and should not be construed as financial or investment advice. Past performance is not indicative of future results. Please consult a financial advisor before making any investment decisions.
[1] Trust Project guidelines: https://thetrustproject.org/standards/transparency-standards/[2] BeInCrypto Terms and Conditions: https://www.beincrypto.com/terms-conditions/[3] Bitcoin Exchange Inflows Data: https://www.cryptoquant.com/oxbtc-supply-ratio/btc-usdt-1h
- The current slowdown in Bitcoin's inflow to exchanges, as indicated by CryptoQuant, suggests a decrease in sell-side pressure, which is typically associated with an increase in Bitcoin's value.
- The Bitcoin Taker Buy Sell Ratio on Binance, currently at 1.142, indicates growing demand for Bitcoin on the largest cryptocurrency exchange in terms of trading volume.
- Bitcoin's Elder-Ray Index readings indicate an increasing buildup of buying pressure in the market, suggesting the potential for Bitcoin to break through the resistance at $98,983 and reclaim the $100,000 milestone.
- To capitalize on this growing market, traders can take advantage of commission-free bonuses on select exchanges and diversify their portfolios with a wide selection of cryptos, stocks, commodities, and more.
- The market's optimistic trend could continue, potentially pushing Bitcoin's price past $101,070, but profit-taking activity could thwart this projection, causing Bitcoin to dip below $95,971.
- Investors should consult a financial advisor before making any investment decisions, as past performance is not indicative of future results.
- For more actionable insights on your journey to financial freedom, consider using the user-friendly, powerful, and trustworthy platform offered by Plus500.
