As Bitcoin (BTC) takes a brief breather after creating a new all-time high (ATH) above $125,000, on-chain data shows that three key indicators played a major role in the digital asset’s latest rally to $125,000. new highlights.
These three indicators suggest more room for Bitcoin
According to a CryptoQuant Quicktake post from Arab Chain, new data from Binance suggests that BTC is witnessing one of its most significant buying phases since mid-year. Notably, the price of BTC has risen from approximately $117,000 to $124,000 since early October.
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Arab Chain highlighted three key indicators that point to the yield of whales in the Bitcoin market. First, net buying pressure (vol_delta) rose above $500 million on some days, indicating that buying pressure exceeded selling pressure by this amount.
Similarly, the imbalance ratio (imbalance_pct) recently peaked at 0.23, indicating that BTC buy orders on Binance were approximately 23% higher than sell orders. Higher buy orders than sell orders generally indicate strong demand and potential upward pressure on the asset’s price.
Finally, the Z-score registered a value of 0.79, reflecting above-average purchasing activity. For the uninitiated, a Z-score measures how many standard deviations a data point is away from the mean.
The CryptoQuant analyst noted that these indicators confirm that institutional buyers and whales have returned to the current Bitcoin market. Arab Chain added:
This activity coincides with a marked increase in daily trading volumes, which have reached their highest level since last July, indicating that the rally is supported by real liquidity and not temporary speculation.
Recent trading sessions have shown that a number of these indicators – especially vol_delta – have dropped slightly in value and temporarily moved into negative territory. That said, the broader indicators still point to a continued uptrend for the top cryptocurrency.
Notably, average daily volatility has remained low, confirming strong market confidence and stable demand. This is in stark contrast to the market behavior shown in September, when BTC struggled around $100,000.
In conclusion, both technical and behavioral indicators support BTC’s continued rise to $125,000 – $130,000 in the near term. Unless a strong wave of sell-off occurs, any price correction should be viewed as an opportunity to accumulate BTC, Arab Chain noted.
What’s next for BTC?
While predicting the future of BTC is typically challenging, some analysts are not shying away from making predictions about the upcoming price trajectory of the flagship digital asset. For example, the price ranges of BTC to suggest a move towards $140,000 is likely.
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Also fast decreasing The reserves of BTC on crypto exchanges could push the cryptocurrency’s price to even greater heights, potentially reaching $150,000 and more. At the time of writing, BTC is trading at $122,373, up 0.3% in the last 24 hours.
Featured image from Unsplash, charts from CryptoQuant and TradingView.com