Key Points
- Bitcoin’s buying pressure is increasing, potentially leading to a bullish trend reversal towards $100k.
- Despite recent corrections, analysis suggests short-term support for Bitcoin near $96k.
Bitcoin [BTC] recently crossed the $100,000 mark, but has since experienced several corrections, pushing its value down to $97,000. A recent analysis indicates that BTC has short-term support near $96k, leading to speculation about whether the coin will lose more value or make a recovery rally back to $100k.
In the last 24 hours, Bitcoin has seen a price decline of over 2.5%, pushing it below the $97k mark. At the time of writing, the coin was trading at $96,970.58, with a market capitalization exceeding $1.91 trillion.
Bitcoin’s Struggle and Potential Recovery
Data analytics platform Glassnode posted a tweet highlighting a significant development. The analysis utilized BTC’s Cost Basis Distribution (CBD) metric, revealing where BTC’s supply has clustered at key price levels. The data showed $99,559 as the largest accumulation zone below $100k (125k BTC), while $96k–$98k, with 120k BTC accumulated, shaped up as potential short-term support.
BTC’s MVRV ratio reached a historic level, which in the past has been followed by price corrections. However, CryptoQuant’s data revealed that BTC’s aSORP was red, indicating more investors are selling at a profit. This can suggest a market top in the middle of a bull market.
Despite this, BTC’s exchange reserve indicated that buying pressure increased in the last 24 hours as the metric was declining. Furthermore, BTC’s accumulation trend score had a value of 1, signaling high accumulation and potential for a bullish trend reversal.
Currently, BTC is testing its 20-day SMA support. If successful, this could help BTC reverse the trend and move towards $100k again. The Chaikin Money Flow (CMF) registered an uptick, suggesting that BTC might manage to test the support. However, if selling pressure increases in the near term, BTC might drop to $96k again.
