Bitcoin: Is $25,000 the next supply level for BTC holders

Bitcoin has resumed its belonging to the upside after the weak decline last week and relative uncertainty earlier this week. This uncertainty was caused by the market eagerly anticipating inflation data that turned out to be softer than expected.

The lower inflation data boosted investor sentiment. Therefore, we encourage a general bullish outlook. Bitcoin managed to gain about 6.9% over the past two days and was trading at $24,433 at press time.

The price action in recent weeks gives a rough idea of ​​where the price is headed.

Bitcoin’s rising channel has so far capped the price within a support and resistance zone.

If it maintains the same range, we should expect Bitcoin to continue to rise, and a potential reversal near the $25,500 price range.

Source: TradingView

Is there an outbreak potential?

BTC owners should note that the bullish momentum has significantly reduced according to the MACD. This is compared to previous rallies within the current range, especially in July.

However, the number of addresses with at least one Bitcoin has steadily increased over the past two weeks. If it maintains the same pace, BTC may just have enough momentum for a breakout.

Source: Glassnode

On the other hand, the number of addresses bought may decrease as the price approaches the resistance line. Another healthy indicator to watch is the Purpose Bitcoin ETF Holdings metric.

This ETF has bought during the rallies and duped a lot of BTC during the falls. Thus contributing strongly to the price action.

For example, the Purpose Bitcoin ETF metric recorded an increase from 24,898 BTC on August 9 to 26,079 BTC the following day. This is consistent with the resulting bullish Bitcoin price action during this period.

Source: Glassnode

Some outflows from this calculation are likely to be observed as the price approaches the resistance line. This assumes that there will be enough sales pressure.

Moreover, Bitcoin’s recent rally was supported by strong accumulation. About 12.05 million BTC changed hands according to BTC’s age consumption on Santiment. A higher MVRV ratio was a consequence of the upside, and more traders in profit means a sell is waiting to happen.

Source: Sentiment

Bitcoin may deliver another retracement after the next resistance line test. However, investors should keep in mind that the MACD indicates that the current trend may not last long.