- Buying pressure increased, which may help turn BTC’s charts green.
- A bullish trend reversal could push BTC back towards $100,000.
After crossing $100,000 a few days ago, Bitcoin [BTC] has witnessed multiple corrections. These pullbacks have once again pushed the king coin to $97,000.
Meanwhile, a recent analysis suggested that BTC has a near-term support near $96,000. Does this mean BTC will lose more value, or is it preparing for a recovery rally to $100,000?
Bitcoin is having a hard time
Bitcoin witnessed a price drop of over 2.5% in the last 24 hours, pushing its price below the $97,000 mark. At the time of writing, the king coin was trading at $96,970.58 with a market cap of over $1.91 trillion.
Glassnode, a data analytics platform, posted tweet point to a remarkable development.
The analysis used BTC’s Cost Basis Distribution (CBD) metric, which shows where BTC supply has clustered at key price levels.
Recent data shows that $99,559 is the largest accumulation zone under $100,000 (125,000 BTC), while $96,000 – $98,000, with an accumulation of 120,000 BTC, provided potential short-term support.
Source:
In fact, AMBCrypto before that reported that BTC could soon fall near $96,000. This was the case when the MVRV ratio of the king coin reached historic levels, which was followed by price corrections on previous occasions.
Can BTC recover quickly?
AMBCrypto then checked Bitcoin’s latest data sets to find out if BTC will see further price declines or if it shows signs of a recovery rally towards $100,000.
CryptoQuant’s facts revealed that BTC’s aSORP was red. More and more investors are selling at a profit. In the middle of a bull market, this could indicate a market top.
Furthermore, the King Coin binary CDD suggested that the movement of long-term holders over the past seven days was higher than the average. If they are moved for the purpose of sale, this could have a negative effect.
Source: CryptoQuant
Nevertheless, BTC’s exchange reserve indicated that buying pressure has increased over the past 24 hours as its value fell. Apart from this, BTC’s accumulation trend score had a value of 1.
To begin with, a value closer to 1 is a sign of high accumulation, which shows investors’ confidence in the coin and could cause a bullish trend reversal.
Source: Glassnode
Read Bitcoins [BTC] Price prediction 2024-25
At the time of writing, BTC was testing its 20-day SMA support. A successful test could help BTC change the trend and head back towards $100,000.
In fact, the Chaikin Money Flow (CMF) registered an upswing – a signal that BTC could succeed in testing the support. However, if short-term selling pressure increases, BTC could fall back to $96,000.
Source: TradingView