Bitcoin recovers $115,000 - Tracing Bitcoin's path towards $118,000 and further heights
In a recent development, over 120,000 BTC were acquired between $112K and $114K, marking a significant milestone during Bitcoin's latest rebound. However, current on-chain indicators suggest that the momentum might be fragile, despite breaking the $115K resistance.
Bitcoin is currently consolidating after a slight downside wick, which implies short-term momentum fragility and a potential pullback before resuming bullishness. The Relative Strength Index (RSI) sits at around 53, indicating neither overbought nor oversold conditions, signalling no strong momentum currently.
On-chain data from TRON network USDT transfers show that when large USDT amounts are transferred, this often corresponds with significant profit-taking by large Bitcoin holders. This activity reduces buying pressure by converting BTC to USDT and moving funds to private wallets, which can cause price momentum to weaken.
Moreover, realised volatility for Bitcoin is near multi-year lows, a pattern historically seen before larger moves but unusual for market tops. Low volatility suggests momentum is subdued and fragile, unlike the heightened volatility characteristic of strong rallies or climaxes.
These on-chain and technical signals imply that although Bitcoin has broken the $115K resistance, the momentum is not yet robust and may be fragile, with potential short-term corrections or consolidation ahead before any sustained upward move.
However, the current inconsistency in on-chain activity highlights a lack of unified conviction from users and market participants. Historically, surges in network growth, transaction count, and Spot Netflow have aligned with major price rallies.
At press time, Bitcoin's price is hovering near $116,377. Long-term holders of Bitcoin have realized $44.5 million in profits over the last 48 hours. Without increasing volume and consistent buyer demand, this move risks becoming a failed rally.
If sustained, inflows paired with price strength could support higher valuations for Bitcoin. For Bitcoin to establish a sustained uptrend, denser accumulation and stronger hands are needed at current price levels. Holding above $115,000 in the coming sessions is key for sustaining the upside momentum.
According to Glassnode, on-chain activity remains inconsistent. The latest Spot Netflow shows a positive shift of $33.25 million, breaking a months-long pattern of outflows. This sudden shift could be a sign of renewed buying interest or short-term trading activity.
Without stronger user participation and consistent inflows, the move risks becoming a failed rally. The next major target for Bitcoin's price is $118,327. The structure on lower timeframes shows a solid base of higher lows, indicating a potential for a sustained uptrend.
In conclusion, while Bitcoin has broken above the $115,000 resistance, the momentum remains fragile, and caution is still warranted in the Bitcoin market. The next few sessions will be crucial to determine if the current inflow marks a broader shift in sentiment.
- Despite the acquisition of over 120,000 BTC between $112K and $114K, on-chain indicators suggest that the Bitcoin momentum might be fragile.
- On-chain data from the TRON network USDT transfers shows that large USDT amounts often correspond with significant profit-taking by large Bitcoin holders, which can cause price momentum to weaken.
- The Ethereum network seems to be relatively stable compared to Bitcoin, with its current price hovering around $3,578, and its token, ETH, experiencing a lesser volatile trend.
- Meanwhile, Solana has been making strides in the sports sector, with several collaborations and partnerships aimed at tokenizing sports assets and promoting blockchain adoption in the sports industry.
