Bitcoin’s Netflow Trends Suggest $100K Target May Be Delayed: Here’s What It Means
Bitcoin has gained a significant rebound from the recent downturn over the past few hours, as FTX has repaid $1.2 billion to repay to creditors, which has increased the market’s large amount of liquidity. Despite this recovery, various on-chain metrics currently show that Bitcoin may not exceed the crucial $100,000 in the coming days. This sentiment may give short-term holders (STHs) the opportunity to establish local peaks in BTC prices.
Bitcoin’s NetFlow continues to rise
Bitcoin prices are facing a surge in purchasing demand as the Bull successfully pushes the price higher by $97,000. Coinglass data shows that the total liquidation of Bitcoin prices is about $22.24 million. Among them, the seller sold a short position worth nearly $15 million.
The recent upward rally of BTC prices is driven by short-term holders. Short-term holders (STH) have always been the key to Bitcoin’s latest upward turnover. The amount of Bitcoin they hold shows that the market is showing an accumulation phase observed in May 2021.
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However, their ideal moment of persistence in selling their shares could lead to a sharp drop in the BTC price list. This could happen near the $100,000 trademark, which could further delay the BTC resume rally.
Data from intotheblock shows that Bitcoin’s NetFlow has increased. The indicator has been climbing since February 16 and is currently around 1.82K BTC. This indicates that inflow continues to exceed outflow.
This means investors are transferring their holdings to the exchange, thus increasing trade reserves. As a result, this could create sales pressure, which could delay Bitcoin’s continued recovery rally.
Currently, the fundraising rate has risen sharply because it has a funding rate of 0.006%. This shows that the buyer is now in control. Additionally, the long/short ratio is rising, currently at 1.1725, suggesting an increase in bullish pressure. Currently, 54% of traders expect BTC prices to be corrected.
What is the next step in BTC price?
Bitcoin’s price surges as it faces a drop in buying confidence of $95,000. Currently, Bitcoin will continue to buy demand after soaring to $97,000. However, the bear may soon stop this recovery rally. Currently, Bitcoin is trading at $97,777, up 1.9% from the past 24 hours.
The BTC/USDT trading pair is now looking to exceed the important $100,000 as buyers have greater control over each channel on each Fibonacci channel. If Bitcoin maintains this momentum, we can see it can reach $102K. With the RSI level now hovering at the level within the purchase area, buyers will strongly defend the callback on the price list.
However, if Bitcoin cannot keep up with this speed, sellers may reduce the price to below $95,000. At this level, Bitcoin may repurchase buyers’ patience, and failures will consolidate prices above $92K.
