Bitcoin (BTC) Breaks Above the $95,000 Psychological Barrier

With key on-chain metrics pointing to a slowdown in exchange-bound inflows, the coin may soon reclaim the $100,000 price mark.

Leading cryptocurrency Bitcoin (BTC) broke above the $95,000 psychological barrier on Thursday, driven by renewed confidence among long-term holders as key on-chain metrics pointed to a slowdown in exchange-bound inflows.

This suggests that the coin may soon reclaim the $100,000 price mark.

BTC Poised for Further Gains Amid Low Sell-Offs and Rising Demand

According to on-chain data from CryptoQuant, the number of unique wallet addresses sending BTC to exchanges has dropped to its lowest level since 2017, currently sitting at 19,282 addresses. This saw a decline of over 60% over the past month.

Commonly interpreted as a measure of sell-side pressure, this metric suggests that fewer investors are looking to offload their holdings, reinforcing the current bullish sentiment in the BTC market.

This aligns with the observations of independent on-chain analyst Ali charting the decrease in exchange-bound outflows, previously reporting that the seven-day rolling average of BTC outflows from futures exchanges had reached its lowest point since November 2022.

Typically, low exchange inflows like this have coincided with periods of strong price performance. As fewer coins are flowing to trading platforms for potential sale, this scarcity drives up BTC’s value.

This is further supported by the spike in BTC’s Taker Buy Sell Ratio on leading cryptocurrency exchange Binance, highlighting a shift in market participants’ behavior. In a new report, CryptoQuant analyst Amr Taha noted, “the most recent data point shows a sharp increase to 1.142, the highest level in this range.”

This metric measures the ratio of buy orders executed against sell orders in the futures market. A taker buy-sell ratio below one indicates that more sell orders are being executed, suggesting a shift in market sentiment from bullish to bearish.

When this ratio is above one, there are more buy orders than sell orders. This indicates that more market participants are actively buying BTC rather than selling it, suggesting a demand-driven market.

The rising ratio on Binance is particularly interesting, given the exchange’s role in facilitating a large portion of cryptocurrency trades. If this trend continues, we could see BTC’s price continue to climb.

Bitcoin Eyes $100,000 as Bull Power Gains Momentum

On the technical side, readings from BTC’s Elder-Ray Index on the daily chart confirm the strengthening demand for the coin. The histogram bars of this indicator have expanded in size over the past few days, highlighting an increasing buildup of buying pressure in the market.

The Elder Ray Index measures the strength of buying and selling pressure in the market, using two key components: Bull Power and Bear Power. When the size of its bars increases and its value is positive, it indicates growing buying pressure. It suggests the market is in an uptrend with increasing strength behind the bullish movement.

If this continues, BTC could smash through the resistance at $98,983, setting its sights on reclaiming the $100,000 price mark and continuing its ascent toward $101,070.

However, if profit-taking activity resumes, this bullish projection will be invalidated. In that scenario, BTC could resume its downward trend, breaking below $95,971 and continuing its descent to $91,851.