Bitcoin Netflow Trends Indicate Potential Delay in Reaching $100K Target: Implications Explained
In the past few hours, Bitcoin has experienced a notable rebound from its recent slump, triggered by FTX’s repayment of $1.2 billion to its creditors, which added substantial liquidity to the market. Despite this recovery, various on-chain indicators currently suggest that Bitcoin may not surpass the critical $100K mark in the coming days. This sentiment could present short-term holders (STHs) with an opportunity to establish a local peak in BTC’s price.
**Bitcoin’s Netflow Continues to Rise**
Bitcoin price faced a surge in buying demand as bulls successfully pushed the price above the $97K level. Data from Coinglass indicates that Bitcoin price witnessed a total liquidation of approximately $22.24 million. Of this, sellers liquidated nearly $15 million worth of short positions. The recent upward rally in the BTC price is driven by short-term holders. Short-term holders (STH) have been pivotal in Bitcoin’s latest upward swings. The amount of Bitcoin they hold suggests that the market is exhibiting the accumulation phase observed in May 2021.
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However, they are holding out for the ideal moment to sell their holdings, which could lead to a sharp drop in the BTC price chart. This scenario could occur near the $100K mark, potentially further delaying the BTC recovery rally. Data from IntoTheBlock indicates a rise in Bitcoin’s netflow. This metric has been climbing since February 16 and currently stands at approximately 1.82K BTC. This suggests that inflow volume continues to surpass outflow volume.
This implies that investors are transferring their holdings to exchanges, thereby boosting the exchange reserve. As a result, this could create selling pressure that may hinder Bitcoin’s ongoing recovery rally. Currently, the funding rate is rising sharply, standing at 0.006%. This indicates that buyers are now in control. Additionally, the long/short ratio is also rising, currently at 1.1725, hinting at increasing bullish pressure. At present, 54% of traders expect the BTC price to correct upwards.
**What’s Next for BTC Price?**
Bitcoin’s price is surging as it faced increased buying confidence around the $95K dip. Currently, Bitcoin is experiencing sustained buying demand after surging above $97K. However, bears might soon emerge to halt this recovery rally. At present, Bitcoin is trading at $97,777, reflecting a 1.9% increase over the last 24 hours.
The BTC/USDT trading pair is now aiming to rise above the crucial $100K mark as buyers take more control around each Fibonacci channel. If Bitcoin maintains this momentum, we could see it reach up to $102K. As the RSI level currently hovers within the buying region, buyers will strongly defend against a pullback on the price chart. However, if Bitcoin cannot sustain this pace, sellers might drive the price back down below $95K. At this level, Bitcoin could retest buyers’ patience, and a failure to hold could consolidate the price above $92K.