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- BTC broke out of its price range with a strong push above the $29k level.
- Supply on exchanges fell to encourage short-term buyers.
Bitcoin [BTC] broke out of a week-long price stagnation with a significant push above the $29.4k resistance level. Previously, BTC traded between $28.9k and $29.3k with a dip in demand between August 5 and August 7.
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This 3.6% rally over the past day lifted Bitcoin’s market dominance to 48.94%. At the time of writing, the king coin was trading at $29.8k with bulls actively looking to reclaim the $30k price level.
Bulls bolstered by capital inflows
Source: BTC/USDT on trade view
The Chaikin Money Flow (CMF) highlighted the remarkable inflow of capital into Bitcoin over the past 48 hours. The indicator rose sharply from negative to positive with a reading of +0.07 at the time of writing. This translated into a significant rally by buyers to break out of the price range.
The Relative Strength Index (RSI) echoed the new buying pressure, as it climbed above the neutral 50 and stood at 62. These were indications that Bitcoin was experiencing a new wave of demand after last week’s lackluster price action.
A major hurdle in the form of a bearish order block (OB) in the $30,000 price zone is bulls gaining more gains. A look at the 12-hour time frame showed that price has reversed twice on this bearish OB.
With BTC maintaining a bearish view on the daily time frame, crossing the $30,000 hurdle for bulls will be key to sustaining the bullish rally and continuing for more gains.
Read Bitcoin [BTC] Price Forecast 2023-24
The average coin age increased as supply on exchanges declined
Source: Sentiment
Dates from Sanitation showed that the average coin age of 90 days on August 4 rose sharply after a previous decline. This indicated an accumulation of Bitcoin, which translated into the recent price rally. As of writing, the average coin age continued to rise, indicating that more buyers were bidding for BTC.
At the same time, stock market supply declined, demonstrating a reduction in selling pressure. The evidence pointed to more short-term gains for BTC if bulls can overcome the bearish OB.