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- The triangle pattern and bullish structure showed that buyers had the upper hand.
- The repeated failure to break the $37.5k resistance meant the market could become overloaded.
Bitcoin [BTC] continued to trade below the $37.5k resistance. The market saw an increase in trading volume and open interest in the BTC futures market. Whales were also looking to take a long position in BTC, as per an earlier report from AMBCrypto.
The hash rate had also increased, demonstrating the good health of the network. Do these positive findings mean traders can be confident about another move higher for the king of crypto?
The bullish chart pattern was still present
Source: BTC/USDT on TradingView
The green line represented rising trendline support for BTC that has been present since October 25.
Meanwhile, the $37.5k mark has been resolute in hindering bullish progress so far. Over the past three weeks, BTC posted a series of higher lows, forming an ascending triangle pattern.
This pattern was expected to produce a bullish breakout targeting $42k. To the north, the $41,000-$43,000 represented a higher timeframe resistance zone. The Fibonacci extension levels (light yellow) indicated that the next points of interest are above $37.5k at $41k and $46k.
BTC’s market structure was bullish due to the formation of higher lows, and the RSI supported this observation. The price had yet to dip below the neutral level of 50, which would indicate a possible shift in momentum.
On-Balance Volume also continued to climb higher. The Chaikin Money Flow (CMF) showed significant capital inflow with a value of +0.08.
On the other hand, a daily session below $35.4k would turn the market structure bearish. Additionally, the RSI and BTC prices formed a bearish divergence, suggesting a pullback could be coming.
The exchange flow of BTC suggested that accumulation was taking place
Source: CryptoQuant
AMBCrypto analyzed data from CryptoQuant to investigate the Bitcoin flow in and out of exchanges. The above exchange net flow metric was one of the prime candidates to explore this aspect of on-chain data.
Read Bitcoins [BTC] Price prediction 2023-24
The graph showed that more BTC left the exchanges than entered in the past ten days. This meant that market participants continued to buy the asset and move it off the exchange into private wallets or cold storage.
It was also a sign of accumulation and indicated that another rise in prices was likely.