Bitcoin, or BTC, has been trading within a specific range, with resistance at $98,804 and support around $94,603. There are indications from on-chain signals suggesting that this leading cryptocurrency may be preparing for a significant upward shift.
The Exchange Stablecoin Ratio has decreased significantly, indicating increased buying power on exchanges. This shift in market dynamics has led to speculation that Bitcoin may be poised for a price increase, potentially breaking out of the current price range and reaching new highs.
The performance of Bitcoin and market dynamics
The recent trading range of Bitcoin reflects that the market is in a consolidation phase, with the price struggling to overcome the resistance level of $98,804 while still holding above the support level of $94,603. The daily RSI at 61.41 indicates moderate bullish momentum, but a clear breakout signal has yet to be seen.
Despite stagnant prices, OBV maintains an upward trajectory, indicating ongoing buying pressure. The divergence between price and OBV suggests potential hidden bullishness. The decrease in the Exchange Stablecoin Ratio reinforces this view, indicating that buying power on exchanges is increasing.
The impact of the Exchange Stablecoin Ratio and holding behavior
The Exchange Stablecoin Ratio, currently at 0.000060, the lowest level in 2024, indicates significant buying power on exchanges. This metric reflects an increasing supply of stablecoins relative to Bitcoin, signaling that investors are well-positioned to buy BTC.
The increase in holding behavior among short-term Bitcoin holders is also noteworthy. CryptoQuant data shows a 36% increase in their average holding period over the past month. This reduces immediate selling pressure, promoting scarcity in the market and enhancing price stability.
These dynamics, the low Exchange Stablecoin Ratio, and increased confidence among holders enhance the potential for Bitcoin to surpass the resistance level of $98,804, with the $100,000 mark increasingly within reach.
As of now, Bitcoin is trading at $95,323, slightly below the key resistance level of $98,804. Steady inflows into exchanges, reflected in the low Exchange Stablecoin Ratio, indicate significant buying power that could drive demand.
If short-term holders continue their 'HODL' strategy and investor sentiment remains optimistic, Bitcoin could break through this resistance and move closer to the psychological milestone of $100,000. However, any increase in selling pressure could cause BTC to consolidate within the current range or revert to the critical support level of $94,603 before attempting to break out again.