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Bitcoin spent the weekend trading within a relatively narrow range between $91,700 and $88,700, indicating strong price action. Although there has been no significant price movement, the consistent ability to hold within this range underscores Bitcoin’s current strength and growing market confidence.
Key data from CryptoQuant adds further optimism, revealing a notable decline in selling pressure. The data points to fewer sellers in the market, which is in line with the broader bullish sentiment that has fueled Bitcoin’s recent momentum. With the supply side constrained, demand could push BTC higher, reinforcing the strong price action seen over the weekend.
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This optimistic backdrop has raised expectations of strong increases in the coming months as Bitcoin remains well positioned to benefit from favorable market dynamics. Analysts point out that with selling pressure limited and demand continuing to grow, Bitcoin could be poised for its next big breakout.
Investors are watching closely to see if this strength will lead to a new phase of bullish momentum, which could push Bitcoin into uncharted territory as the market anticipates the next major move in this bull cycle.
Bitcoin inflow to exchanges supports bulls
Bitcoin has had an exhilarating few weeks, rising 39% in just nine days, marking one of the most aggressive bullish moves of this cycle. The recent rally has left analysts and investors both excited and cautious, as Bitcoin continues to show resilience above key levels. While many expect Bitcoin to maintain its upward trajectory, opportunities to buy at lower prices are becoming increasingly rare.
Data from CryptoQuant analyst Axel Adler Adds valuable insight into current market dynamics. Adler notes that the average Bitcoin inflow to exchanges over the past 30 days has not exceeded the average volume over the last 365 days.
This indicates that there is not much selling pressure, suggesting that current Bitcoin holders are more inclined to hold their Bitcoin rather than sell during the rally. With fewer sellers in the market, the price of Bitcoin has the potential to rise further as demand increases.
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However, analysts agree that holding around the current price range would be a healthy move before the next rally. Consolidation may allow the market to stabilize, attract new demand and create stronger support levels for the next growth phase.
BTC is less than 2% away from ATH
Bitcoin is trading at $91,700, just under 2% from its all-time high (ATH) of $93,483. This closeness to record levels has increased optimism among investors, as the price appears poised to rise above the ATH again this week. Bitcoin price action remains strong, supported by increased demand and bullish market sentiment.
The continued strength of the BTC price has been attributed to its ability to maintain key levels during periods of consolidation. This resilience suggests buyers will continue to dominate, enhancing the likelihood of another breakout above the $93,483 mark. Analysts expect that a breach of this level will spark another wave of aggressive buying, which could push Bitcoin into uncharted territory.
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However, caution is still warranted. A break below $87,000 would signal a pullback for Bitcoin, potentially initiating a short-term correction in the coming days. Such a move could provide a healthier foundation for the next growth phase, allowing Bitcoin to consolidate and attract new demand.
Featured image by Dall-E, chart from TradingView
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