This past week, the Bitcoin price performed its best since the infamous October 10 downturn, which led to the largest liquidation in crypto history. The leading cryptocurrency appears to be on a recovery path, returning above the $90,000 mark on Wednesday, November 26.
Despite the several bear market calls in recent weeks, the public has returned with hopes that BTC’s bull run will resume. However, a prominent on-chain analyst has emerged with an interesting analysis of the current Bitcoin price outlook.
BTC price remains within the $70,000 – $90,000 zone: analyst
In a November 28 post on the X platform, CryptoOnchain shared an assessment of Bitcoin’s current price action around the $90,000 level. According to the crypto expert, recent on-chain data suggests that the market leader is at risk of rejection at current price levels.
Related reading
CryptoOnchain highlighted that the Bitcoin price lost a significant support level at $90,000 when it initially fell to around $80,000 a week ago. Now, the price of BTC is looking to reach a sustainable close above the USD 90,000 level, following a return from the Point of Control (POC) near USD 82,000.
In crypto trading, the point of control (POC) refers to the price level with the highest volume of trading activity within a given period. It basically represents a zone where buyers and sellers are equal, leading to the formation of support or resistance.
After returning around $82,000 from the POC, CryptoOnchain said the flagship cryptocurrency has now settled into a “clear” consolidation zone between the $70,000 and $90,000 region. Although the Bitcoin price is currently above $90,000, the analyst noted that the market leader may be rejected.
This conclusion was drawn from on-chain data showing that large amounts of Bitcoin have flowed into Binance, the world’s largest crypto exchange by trading volume. According to CryptoQuant, the cryptocurrency exchange has seen more than $2 billion worth of BTC in the past seven days, which could put some downward pressure on the price.
In addition to the potential selling pressure, there is limited purchasing power to absorb the additional BTC supply that could enter the open market from the sale. CryptoOnchain shared that net stablecoin inflows on Binance are around $735 million, meaning limited potential demand or purchasing power.
With this “clear supply-demand imbalance,” CryptoOnchain concluded that a rejection of the $90,000 mark and a sideways move within the $70,000 – $90,000 consolidation zone is the likely scenario for the price of BTC.
Bitcoin price at a glance
At the time of writing, BTC’s price is just above $91,000, reflecting no significant movement over the past day.
Related reading
Featured image from iStock, chart from TradingView