This week, Bitcoin’s price is recovering after it crashed to about $91,000 last weekend. Since Donald Trump won the election, Bitcoin’s price has often dropped below $100,000 and then climbed to new highs. This time, Bitcoin’s on-chain data is showing some unexpected trends, and several metrics indicate that its price might reach a new record high this month.
Strong ETF, Whale Interest and Netflow Boost BTC
Data from Coinglass indicates that in the last 24 hours, Bitcoin saw total liquidations close to $40 million. This included an almost equal share between buyers and sellers, with bullish trades amounting to $23 million and bearish trades totaling $17 million being liquidated.
Despite this increased volatility, on-chain data are now flashing a positive sentiment for Bitcoin. Data from CryptoQuant shows that Bitcoin’s exchange reserve is declining aggressively. This means that people are taking their Bitcoin off exchanges and keeping it themselves, which lowers the amount available for trading and selling.
Since exchange reserves show how much supply is out there, this ongoing drop could help increase Bitcoin’s price in the next few weeks.
Additionally, there’s a growing interest among large investors, or whales, to buy Bitcoin while its price is around dip. Data from IntoTheBlock reveals that since the February 3 crash, the volume of large transactions has increased significantly, jumping from $40.8 billion to $67.3 billion. This indicates that the recent low price has attracted these big investors, creating a strong base of support that could drive Bitcoin’s price to new highs.
Also, the netflow of Bitcoin is currently around a yearly low, at $4.85 billion on the negative side, according to IntoTheBlock. This means more Bitcoin is leaving exchanges than coming in, reducing the amount available on exchanges and plunging the chances of price drops due to selling pressure.
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Additionally, Bitcoin’s recent recovery is triggered by strong ETF investments, which have pulled in about $2.5 billion over the last two weeks. This influx of funds is helping Bitcoin to potentially reach new all-time highs soon.
What’s Next for BTC Price?
The price of Bitcoin is struggling to maintain its level around $100K as bears continue to defend the resistance levels strongly. Though it’s under downward pressure above $100,000 but could soon break through this barrier. Bitcoin is currently priced at $97,943, having dropped by 0.24% in the last 24 hours.
The BTC/USDT trading pair is finding it tough around the $100,000 mark, which could be a slight hurdle. If it can surge above this level, it would benefit buyers, potentially pushing the price towards $105,000 or even $109,000.
On the flip side, if Bitcoin continues to trade below the EMA20 trend line on the 1-hour chart, sellers might drive the price down to $95,000 for a retest. However, the RSI at around 45 indicates there could be a potential increase in price soon.
