Bitcoin Demand Outpaces Supply – On-Chain Metrics Reveal Low Seller Volume
Bitcoin traded within a relatively tight range of $91,700 to $88,700 over the weekend, showing strong price action. Although the price has not moved significantly, the ability to continue to remain in this range highlights Bitcoin’s current strength and growing market confidence.
Key data from CryptoQuant further added to the optimism, showing selling pressure easing significantly. The data suggests there are fewer sellers in the market, in line with the broader bullish sentiment that has been driving Bitcoin’s recent momentum. With the supply side constrained, demand could push Bitcoin higher, reinforcing the weekend’s strong price action.
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This optimistic backdrop has led to predictions of significant Bitcoin gains in the coming months, as Bitcoin remains amidst favorable market dynamics. Analysts say Bitcoin may be gearing up for its next major breakout as selling pressure is limited and demand continues to grow.
Investors are watching closely to see whether this strength will lead to a new phase of upward momentum. Bitcoin heads into uncharted territory as markets anticipate next big move in this bull market cycle.
Bitcoin flows to exchanges support bulls
Bitcoin has had an exciting few weeks, surging 39% in just 9 days in one of the most aggressive upward moves of the cycle. The recent rally has analysts and investors both excited and cautious as Bitcoin continues to show resilience above key levels. While many expect Bitcoin to maintain its bullish trajectory, opportunities to buy at lower prices are becoming increasingly scarce.
Data from CryptoQuant analyst Axel Adler Adds valuable insights into current market dynamics. Adler noted that average Bitcoin traffic on exchanges over the past 30 days has not exceeded the average trading volume over the past 365 days.
This indicates a lack of significant selling pressure, suggesting that current holders are more inclined to hold on to Bitcoin rather than sell on the rally. With fewer sellers in the market, the price of Bitcoin is likely to climb further as demand increases.
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However, analysts agree that consolidation around the current price range would be a healthy step before the next move higher. Consolidation can allow markets to stabilize, attract new demand, and establish stronger support levels for the next phase of growth.
BTC is less than 2% from ATH
Bitcoin is currently trading at $91,700, less than 2% away from its all-time high (ATH) of $93,483. The near-record levels have stoked investor optimism, and prices appear poised to breach top levels again this week. Bitcoin’s price action remains strong on the back of increased demand and bullish sentiment in the market.
The continued strength in Bitcoin price has been attributed to its ability to maintain key levels during consolidation. This resilience suggests that buyers continue to be in control, enhancing the likelihood of another break above the $93,483 mark. Analysts expect that a break above this level could spark another wave of aggressive buying that could push Bitcoin further into uncharted territory.
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However, caution is still required. A break below $87,000 would mark a correction for Bitcoin, potentially initiating a short-term correction in the coming days. This move could provide a healthier foundation for the next phase of growth, allowing Bitcoin to consolidate and attract new demand.
Featured image from Dall-E, chart from TradingView
