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Bitcoin bulls await a breakout past $100K – Here’s why
Bitcoin has been struggling to surpass the crucial $100K resistance level, but recent on-chain metrics suggest a shift in sentiment among market participants. The king crypto is facing stiff resistance as short position takers defend this area aggressively.
Despite being stuck beneath this psychological barrier, Bitcoin’s [BTC] price chart has displayed promising signs of a reversal. A head-and-shoulders pattern looms, indicating the possibility of a correction down to the $78,000 region. However, until this neckline is broken decisively, bears have not been validated.
From an on-chain perspective, recent data indicates that exchange reserves are dwindling, implying less Bitcoin is available for sale in the market. This reduction in sell pressure could be a sign that investors are increasingly opting to hold their Bitcoin, rather than liquidate it at this critical juncture.
Furthermore, crypto analyst Kelvin Murithi highlights reduced inflows since December 30th, suggesting even fewer Bitcoins are being transferred to exchanges. This decrease in exchange inflows reinforces the notion that market participants are not actively selling their holdings, and instead, choosing to hold onto them, thus reducing selling pressure.
As Bitcoin’s bulls continue to await a breakout past $100K, the outcome of this pivotal resistance level will be crucial in determining the coin’s trajectory. A successful breach above this barrier could lead to further gains for Bitcoin holders. However, failure to do so may confirm the bearish head-and-shoulders pattern and potentially result in a correction.
In conclusion, while the road ahead remains uncertain, recent on-chain data offers an optimistic outlook for Bitcoin’s near-term prospects.
Source: ambcrypto.com
