Bitcoin’s price has been on a rollercoaster ride this week, with a sharp drop to $91,000 followed by a strong recovery. This volatility comes on the heels of Donald Trump’s election victory, which has often led to price fluctuations for the popular cryptocurrency. However, despite the recent ups and downs, on-chain data is now pointing towards a potential new record high for Bitcoin in the coming weeks.
One key indicator of Bitcoin’s bullish momentum is the decline in exchange reserves. According to data from CryptoQuant, the amount of Bitcoin held on exchanges is decreasing rapidly as more people opt to store their coins offline. This reduction in available supply could help drive up the price of Bitcoin as demand outstrips availability.
In addition to the decrease in exchange reserves, there has been a notable increase in whale interest in Bitcoin. Large investors have been increasing their holdings of the cryptocurrency since the recent price dip, signaling a strong level of support that could push Bitcoin to new highs. Data from IntoTheBlock shows a significant rise in large transactions, indicating that big players are confident in Bitcoin’s future prospects.
Furthermore, the netflow of Bitcoin is currently at a yearly low, with more coins leaving exchanges than coming in. This trend reduces the selling pressure on exchanges, making it less likely for prices to drop significantly. Combined with strong ETF investments totaling $2.5 billion over the past two weeks, Bitcoin is poised for a potential surge to new all-time highs.
As for the current price action, Bitcoin is struggling to maintain its level around $100,000. Bears are putting up a strong defense at resistance levels, but there is optimism that the cryptocurrency could break through this barrier. At the time of writing, Bitcoin is priced at $97,943, with a slight drop of 0.24% in the last 24 hours.
The BTC/USDT trading pair is facing resistance around the $100,000 mark, but a breakthrough could propel the price towards $105,000 or even $109,000. On the downside, a drop below the EMA20 trend line on the 1-hour chart could lead to a retest of $95,000. However, the RSI indicator suggests that there could be a potential price increase on the horizon.
Overall, with strong ETF investments, whale interest, and a decrease in exchange reserves, Bitcoin is showing promising signs of a bullish trend that could lead to new record highs in the near future.