On-chain trends suggest that bulls are able to regain control over BTC after a long period of struggling as we can see more in our latest Bitcoin news.
The price moves resulted in being heavy with each rally starting selling into as bears aimed to push back to $30,000. Despite this, the cryptocurrency was able to hold strong in the lower $30,000 region and each dip below this level was met with strong buy-side support. There’s a chance that this support will come from institutional buyers. One trader noted that the on-chain trend seems to show that the upside could be imminent in the near-term with the balance of BTC on exchanges plummeting and reached the lowest level ever since it reached the macro bottom in 2018.
BTC was struggling to gain momentum in either direction but the aggressive selling into the pump suggests that the bears are on an edge over it. The slight weakness at the moment was not enough to spark another downtrend but many analysts remained bullish in the short and mid-term. The on-chain trends support this sentiment as the spot reserves on the exchanges started dropping over the past few weeks. At the time of writing, BTC started trading at over 2% with a current price of $33,850 which marks a notable decline from the recent highs of $35,000 that was set overnight.
The rally came after Elon Musk appeared on Clubhouse last night which led to people speculating that he will discuss BTC and even make an announcement about it. He noted that he believes BTC is on the edge of gaining mainstream adoption but he didn’t announce if he has purchased any. One analyst pointed to the balance of spot BTC trading on exchanges as a new bullish trend that seems to favor the upside. He noted that the on-chain trends suggest another bull run noting that global BTC spot reserves are at the lowest point since the bottom in December 2018:
“Spot reserves dropped pretty hard yesterday (which is bullish). Global $BTC spot reserves are now at its lowest point since the macro bottom in December 2018.”
Unless BTC is able to break below the key technical levels in the near-term, the consolidation phase could lead to the crypto seeing upwards expansion in the near-term.
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