Financial Insights That Matter
Bitcoin has experienced a rollercoaster start to the week, briefly dipping below the $100,000 mark in the early hours of Monday before recovering slightly. This correction came after Bitcoin achieved a new all-time high above $109,000 last week, marking a milestone in the cryptocurrency’s ongoing bull run.
At the time of writing, Bitcoin’s price has climbed back above $100,000, leaving investors speculating whether the asset will resume its upward trajectory or enter a prolonged consolidation phase.
Amid this, Burak Kesmeci, a contributor to CryptoQuant’s QuickTake Platform. Kesmeci recently highlighted intriguing trends in Bitcoin’s trading volume on Binance, suggesting that current selling pressure may be “easing.”
Taker Sell Volume Shows Signs of Stabilization
Kesmeci’s analysis focuses on the Taker Sell Volume metric on Binance, which has shown a noticeable uptick in recent sessions. Historically, Taker Sell Volume spikes have signaled heightened selling activity, eventually giving way to buying momentum.
Kesmeci notes that these episodes often coincide with local bottoms as sell orders are completed and new buy orders start to flow in. However, in the past week, hourly data shows a pattern of lower highs in Taker Sell Volume, indicating a gradual decline in selling pressure.
This trend suggests that as major sell orders are fulfilled, the influence of sellers is waning, potentially paving the way for renewed buying interest. According to the analyst, if this pattern holds, Bitcoin could be poised for another rally, contingent on sustained buyer engagement at current price levels.
What The Stablecoin Market Current Stance Signal For Bitcoin
While Kesmeci’s analysis offers a promising outlook, other factors contribute to a more cautious market environment. A separate post by analyst Avocado Onchain highlights the shifting dynamics of stablecoin flows.
USDC deposits into exchanges have surged, potentially signaling increased interest in digital assets. However, this influx coincided with Bitcoin’s price falling back below $100,000.
Avocado also points to a negative Coinbase Premium, a metric that reflects US-led buying momentum. With this indicator showing weakness, the expected strong support from US investors has yet to materialize.
Meanwhile, market sentiment has been influenced by speculation over a potential bubble in US AI tech stocks, as well as concerns about broader corrections in risk assets.
Under these conditions, Avocado highlighted that Bitcoin may face an extended consolidation period before resuming its upward climb. The analyst wrote:
Bitcoin is more likely to undergo a substantial consolidation period before showing signs of recovery, rather than rebounding in the short term. Thus, it is important to approach the market with a long-term perspective rather than a short-term one. I remain optimistic about Bitcoin셲 long-term outlook.
Featured image created with DALL-E, Chart from TradingView
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