BitcoinBTCThe BTC Order Book and Derivatives Data showed that buyers were returning to the market.
Bitcoin’s trading history shows that the $70,000 mark is the level bulls must first master. However, previous BTC rallies have been capped off by traders who sold into bullish momentum. Will this be the first time that things are different?
Bitcoin spot demand remains positive
Bitcoin was trading above $71,300 Wednesday, as spot-market demand has been increasing over the last few days. The major exchanges’ order flows show a shift towards investor accumulation.
30 day spot net volume delta After persistently selling Bitcoin in February, the Bitcoin price, which measures the difference between buys and sales, is now positive for both Binance Coinbase.
Binance’s average 30-day volume is $43.2m, while Coinbase has $13.88m. The behavior of the major crypto exchanges has changed.
This data is a good indicator of the strength and importance of this move. CryptoQuant data Binance’s cumulative volume Delta (CVD), a measure of the net difference between aggressive orders to buy and sell, increased by $3.3 billion from April. CVD measures the difference in aggressive buying and selling orders. The recent increase is due to increased taker-buy volumes following Bitcoin’s fall below $65,000.
Binance’s current net cumulative taker volume has reached its highest point since February when CVD was near $74 million. It indicates that there is more buyer confidence than in the past consolidation phase.
Related: Bitcoin fades three-week highs as BTC price shrugs off Iran war ceasefire
Bitcoins’ line is $72,000
Bitcoin’s relationship with $72,000 is still influencing its short-term direction. This level is a strong resistance and has been since February 4, with attempts on March 4th, 16th to take it back failing. Short-term investors sold a large amount of BTC during both rallies, about 26,000 BTC each time.
What is the current behaviour? shows a different pattern. The data show that after BTC rose to $72,000 in value on Tuesday, short-term investors have sold out nearly 3,000 BTC. This reduced pressure on sellers signals a less urgent need to sell at current levels.
Profitability metrics They are also stabilizing. Bitcoin’s average seven-day net realized loss/profit is now -$109m, which represents a recovery from its low point of -$2bn on 7th February. For the first time in over a month, this metric shows a slight positive bias.
Reduced selling pressure and increasing profitability indicate a market that is more balanced, with buyers gradually absorbing the available supply. The trend has to be maintained and buyers have to hold the zone between $70,000- $72,000 for the next couple of days to ensure a bullish market expansion.
Related: Cango sells 2,000 BTC, cuts Bitcoin production cost by 19% in March
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Source: cointelegraph.com
