Key Points
- Bitcoin’s supply on exchanges has decreased recently, pointing to a rise in buying pressure.
- The Money Flow Index (MF) indicates an increase in buying pressure, potentially leading to a price increase.
Bitcoin [BTC], at the time of writing, had successfully climbed above $100k. Despite crossing this major resistance level, buying pressure has remained somewhat low. This raises the question – Will this low buying pressure cause BTC’s price to drop in the coming days?
Bitcoin’s Current State
At the time of writing, Bitcoin was trading at $101.9k with a market capitalization of over $2 trillion. This, after it briefly dropped under $97.5k over the last 48 hours. Data analytics platform, Santiment, shared that as the week closed, buy calls were quiet on social media. For Bitcoin’s next big swing, this chart will be highly useful as to when to buy and sell.
Over the last few days, BTC’s supply on exchanges dropped. This suggests that buying pressure on Bitcoin has been rising. Concurrently, the coin’s supply outside of exchanges fell further, indicating a decline in selling pressure.
What’s Next for Bitcoin?
BTC’s exchange reserves have been falling too, as per CryptoQuant’s data. This further established the fact that buying pressure was high. Bitcoin’s Rainbow chart revealed yet another positive signal. According to the same, BTC is still within the accumulation trend. This suggested that there may be a further price hike in the coming days.
However, the fear and greed index revealed that the market was in a “greed” phase over the last 24 hours. This meant that there was a possibility of a price correction. BTC’s Money Flow Index (MFI) registered an uptick, indicating a rise in buying pressure. If the uptick in buying sustains itself, Bitcoin might soon breach $102k.
However, the Chaikin Money Flow (CMF) moved south. This can hold back any Bitcoin efforts to head north.
