Buying pressure on Bitcoin has remained high, hinting at a price hike
BTC’s liquidations will rise sharply near the $77,000-mark
Soon after the U.S presidential elections, the crypto market turned bullish, allowing Bitcoin [BTC] to hit an all-time high on the charts. Now, although the king coin has corrected since, at press time, it was still hovering near that range.
In fact, investors seemed to be showing confidence in the coin, which could push BTC further up in the coming days.
Bitcoin accumulation is on the rise
AMBCrypto reported previously that it achieved a new historic high at $76,849 on 7 November. After touching its ATH, BTC’s price dropped slightly. At the time of writing, it was trading at $76,422.29 with a market capitalization of over $1.5 trillion.
Despite this marginal downtick, confidence around BTC has remained high. Ali, a popular crypto analyst, recently shared a tweet revealing an interesting development. According to the same, over 57,800 BTC have gone into accumulation addresses over the last few days. These accumulated BTC were worth more than $4 billion.
Source: X
This accumulation suggested that addresses that hold a significant amount of BTC have been expecting a price rise. If that happens, then BTC might as well once again test its ATH. Therefore, AMBCrypto checked other datasets to find out whether buying sentiment was dominant in the overall market.
Our analysis of CryptoQuant’s data revealed that Bitcoin’s exchange reserves were dropping. A drop in this metric means that investors have been considering buying the king coin. Its Coinbase premium was green too, meaning that buying sentiment was relatively strong among U.S investors.
On top of that, things in the Futures market also looked pretty optimistic. This was evidenced by its green funding rate – A sign that long position traders have been dominant and they would be willing to pay short traders.
Source: CryptoQuant
Is everything supporting a retest of the ATH?
While the aforementioned metrics gave a bullish notion, it wasn’t all clear for Bitcoin. For example, BTC’s aSORP turned red. This indicated that more investors were selling at a profit. In the middle of a bull market, it can indicate a market top.
The king coin’s binary CDD was also bearish as it suggested that long term holders’ movement over the last 7 days was higher than the average. If they were moved for the purpose of selling, it may have a negative impact.
Source: CryptoQuant
We then checked Bitcoin’s liquidation heatmap to find out whether BTC was awaiting large-scale liquidation ahead. This could trigger a price correction before it tests its ATH.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
We found that BTC’s liquidations will rise after it crosses the $77k mark. Therefore, if the accumulation continues and bullish sentiment remains intact, then the chances of BTC hitting a new ATH will be high.
Source: Coinglass
