Bitcoin Accumulation: $100K Support?
Bitcoin Accumulation Zone: $100,000 - $110,000?
Recent Bitcoin (BTC) price action suggests a potential accumulation range between $100,000 and $110,000. Despite short-selling pressure, BTC has remained remarkably stable above the key psychological level of $100,000. This resilience, coupled with positive on-chain data, is leading many analysts to believe a significant bottom is forming.
Key Indicators Suggesting Accumulation:
Outflow/Inflow Ratio: The monthly Bitcoin outflow/inflow ratio has dropped to 0.9, a level last seen at the end of the 2022 bear market. This historically signals strong accumulation and renewed long-term confidence. Data from CryptoQuant supports this observation.
Institutional Buying: Over 19,400 BTC (approximately $2.11 billion) were moved into institutional wallets, indicating strategic positioning by large-scale investors. This suggests significant confidence in Bitcoin's long-term prospects.
Resistance to Short Selling: Despite aggressive short-selling pressure on Binance derivatives, Bitcoin has remained within a tight trading range, highlighting the strength of buying pressure and potential accumulation.
The chart below from TradingView illustrates Bitcoin's recent price action, showing its resilience above $100,000.
While a drop to $100,000 would represent only a 9% correction, the confluence of on-chain metrics and price action strengthens the argument for a potential bottom forming in this range. Historical precedents suggest that such low outflow/inflow ratios often precede significant price reversals.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct thorough research before making any investment decisions.