The post Bitcoin Trading Between $90K and $105K, but Accumulation Remains Evident appeared on BitcoinEthereumNews.com.

The past week has been rough for Bitcoin, with its price fluctuations influencing the broader altcoin market. As a result, the total crypto market cap declined by more than 2% in the past day and reached approximately $3.21 trillion. Despite this volatility and macroeconomic concerns, Bitcoin demand appears to stay strong, as suggested by on-chain data. Strong Bitcoin Demand According to the latest analysis by CryptoQuant, there is a strong Bitcoin demand despite its price fluctuating between $90,000 and $105,000. The 30-day moving average (30DMA) exchange inflow/outflow ratio remains below 1 which signals that outflows surpass inflows – a bullish indicator for investors. A lower ratio typically reflects stronger underlying demand, historically preceding short-term price increases. This trend suggests continued accumulation and reinforces optimism among market participants. However, CryptoQuant cautioned investors that not all outflows indicate direct buying pressure, as some may result from routine asset transfers by centralized exchanges to custodial wallets, such as ETFs, institutional holdings, and OTC desks. Bitcoin appears to be at a crucial phase which could mean that the leading crypto asset is poised for a significant move in either direction. Since reaching its last peak on September 16th, Bitcoin has been in an accumulation phase, following a historical pattern of sharp rallies followed by extended corrections. The Choppiness Index on both daily and weekly charts indicates instability (62 and 72, respectively), meaning, Bitcoin needs to break into a decisive trend soon. This is further validated by Bitcoin’s 90-day range, which has seen price fluctuations of approximately 16% between its highest and lowest levels. A similar scenario unfolded in August 2023, which preceded a major upward move but first shaking out traders holding stagnant positions due to low volatility. Short-term metrics, on the other hand, suggest increased market pressure, with the short-term SOPR in a…

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Filed under: News - @ February 17, 2025 4:21 pm