Bitcoin (BTC) has seen a 5% decline over the past week. At the time of writing, the leading coin is trading at $96,905, below the key $100,000 price level.
Interestingly, the recent drop did not trigger a sell-off. This suggests that the bullish sentiment is still strong, and market participants are expecting the coin to rise back above $100,000 in the near term.
Bitcoin sees a drop in selling
According to CryptoQuant data: Net outflows from cryptocurrency exchanges over the past week exceeded $2.5 billion. Net outflows from exchanges track the amount of coins or tokens that have been withdrawn from exchange wallets.
When outflows of an asset from an exchange increase, it indicates a shift towards holding the asset in private portfolios rather than trading or selling. This often indicates bullish sentiment, as investors may expect prices to rise.
Anonymous CryptoQuant analyst, KriptoBaykusV2, commented on the implications for Bitcoin in a recent report:
“If the trend of Bitcoin outflows continues, it could reduce the selling pressure in the market. With fewer Bitcoins available on exchanges and demand continuing or increasing, prices could see upward momentum.”
Additionally, the coin’s positive funding rate supports the possibility of this bullish projection in the near term. Currently, the funding rate in the perpetual futures markets stands at 0.0081.
When the funding ratio of an asset is positive, it means that long positions are paying out short positions. This indicates that the market sentiment is bullish, as traders expect prices to rise.
Bitcoin Price Prediction: The Coin Faces Dynamic Resistance at $100,000
The broader market decline has caused Bitcoin price to fall below the Leading Span A of the Ichimoku Cloud, forming a dynamic resistance at $100,160. This indicator tracks the momentum of the asset’s market trends and identifies potential support/resistance levels.
When the price of an asset trades below the Leading Span A of the Ichimoku Cloud, it indicates a downtrend where selling pressure is strong and buyers are struggling to push the price higher. This scenario often indicates the possibility of further decline unless the price breaks back above the cloud.
A successful break above this level will push Bitcoin price towards its all-time high of $108,388. On the other hand, a failed attempt to break above this resistance could lead Bitcoin price to a drop to $95,690.