Bitcoin [BTC] attempting another resistance breakout: Will it break $30,000
- Bitcoin saw a higher net outflow despite large outflows.
- Retest of support provided some selling pressure, but long-term owners were still good.
Bitcoin [BTC] peaked at $29,380 on March 24 before experiencing a resurgence of selling pressure. Fast forward almost a week later and the bulls are showing strength again.
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Bitcoin crossed back above the $29,000 price point in the past 24 hours, raising bullish hopes that it will soon cross $30,000. But how likely is this outcome before the end of the week, especially now that the price has to face resistance?
Recent market observations can provide some insight into what to expect. For example, on March 30, Glassnode revealed that Bitcoin’s percentage last active 1+ year was at a new ATH.
📈 #Bitcoin $BTC Percent supply last active 1+ year just hit an ATH of 68.090%
See calculation: pic.twitter.com/cpiDmxXEjT
— glassnode alerts (@glassnodealerts) 30 March 2023
The Glassnode observation suggested that the amount of HODLed Bitcoin was still growing. However, there has also been an increase in selling pressure in recent days. Bitcoin’s daily exchange on the chain peaked at $1.1 billion, while access was lower at $921 million. The cryptocurrency has thus experienced more selling pressure.
📊 Daily exchange flow on the chain#Bitcoin $BTC
➡️ $921.0 million in
⬅️ 1.1 billion dollars out
📉 Net flow: -$148.1 million#Ethereum $ETH
➡️ $580.6 million in
⬅️ $444.9 million out
📈 Net flow: +$135.7 million#Tether (ERC20) USD USD
➡️ $646.1 million in
⬅️ $851.7 million out
📉 Net flow: -$205.6 million— glassnode alerts (@glassnodealerts) 30 March 2023
Will Bitcoin Bulls Give in to the Prevailing Selling Pressure?
A look at Bitcoin’s press time position explained why it had experienced selling pressure. The upside, especially over the last 24 hours at press time, pushed back into the rising resistance line. As such, many investors have taken profits, thus triggering the pullback to the $28753 press time price.
Source: TradingView
Bitcoin would likely experience selling pressure with the retest of the resistance line. Enough selling pressure could trigger more downside, while a bullish dominance could push past resistance and possibly above $30,000.
A look at exchange data revealed that both inflows and outflows were significantly down over the past 24 hours. However, currency outflows dominated slightly at 22,178 BTC, compared to currency inflows of 20,548 at the time of writing.
Source: CryptoQuant
How much is 1,10,100 BTC worth today?
Investors should also note that Bitcoin open interest in the derivatives market is back to its two-month highs, an indication that there was strong demand for BTC in the derivatives market. This increase was accompanied by an increase in the demand for loans, as indicated by the estimated loan-to-value ratio.
Source: CryptoQuant
The last time both calculations peaked at the same level was on March 19. This was followed by some selling pressure, but it was not enough to trigger a major pullback. The fact that the same metrics are back at the same level confirmed relative strength, but the bears may not be far behind.
