- Buying pressure on Bitcoin has increased over the past week.
- Technical indicators pointed to a soon trend reversal.
Bitcoin [BTC] underperformed over the past seven days as the price fell to nearly $55,000. However, the past 24 hours have been in favor of investors.
Does this give investors an opportunity to buy the dip? Let’s find out what’s going on.
Bitcoin is in a dilemma
CoinMarketCaps facts revealed that the price of the king of crypto has fallen by more than 17% in the last seven days. At the time of writing, BTC was trading at $55,128.85 with a market cap of over $1 trillion.
Since BTC is trading below $56,000, this could be the right opportunity to buy BTC. Therefore, AMBCrypto planned to look at the statistics to find out if the buying pressure on BTC was high.
According to our analysis of Santiment data, Bitcoin supply on the exchanges fell sharply last week. This meant that investors were buying BTC at the time of writing.
Source: Santiment
The same goes for CryptoQuant facts suggested that BTC’s foreign exchange reserves were declining. This further proves the point that investors bought BTC.
Apart from that, BTC transfer volume and active addresses have also increased, which can be inferred as a bullish signal.
Source: CryptoQuant
The coming days of BTC
AMBCrypto then checked other data sets to find out what to expect from the king of cryptos. According to our analysis of Glassnode’s data, BTC was well below its market bottom.
The Pi cycle top indicator revealed that BTC’s bottom in the market was $64,000. At the time of writing, BTC was below that level. Moreover, if the benchmark is to be believed, BTC’s market top would be above $99,000.
Source: Glassnode
AMBCrypto’s take on Bitcoin Rainbow graph revealed that the coin was in an accumulation phase. When the indicator reaches this level, it suggests that there is still an opportunity for investors to purchase the BTC at a lower price.
AMBCrypto then checked BTC’s daily chart to better understand what to expect from the coin in the coming days. According to our analysis, the Relative Strength Index (RSI) registered an increase.
The Money Flow Index (MFI) also followed a similar trend.
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These market indicators suggested that the chances of BTC gaining upward momentum were high.
However, the technical indicator MACD showed a bearish advantage in the market, which could prevent BTC from moving higher in the floor days.
Source: TradingView