Key Takeaways
Why is Bitcoin showing signs of reversal?
The BTC Buy/Sell Pressure Delta entered an opportunity zone, while a drop in sending addresses signals easing sell pressure.
What role does U.S. demand play now?
A rising Coinbase Premium Index reflects renewed institutional buying, supporting Bitcoin’s chances of a rebound toward $120K.
Bitcoin’s [BTC] price could be nearing an inflection point after the recent corrections.
The technical picture is flashing an intriguing setup, and positive on-chain metrics are reinforcing the likelihood of a projected market shift ahead.
Bitcoin’s buying opportunity ahead
BTC 60-day Buy/Sell Pressure Delta data – a metric that gauges whether buying or selling pressure dominates – slipped into opportunity zone at press time.
A majority of renowned analysts project an increased institution and whale influx to save the asset from approaching selling pressure that could leave long investors in even deeper losses.
Source: Alphractal
Generally, the shorter-term Delta tends to be more aggressive than the 90-day. At press time, BTC’s 90-day Buy/Sell Pressure Delta data remained slightly more cautious.
Its early entry into the zone hinted that buyers could be preparing to step in at current price levels.
In other words, after weeks of selling pressure, BTC’s sentiments have shifted. The metrics indicated that buyers were still in control of the long-term time frames.
The development affirms that BTC is under long-term buying pressure despite the short term cautionary signals.
All in all, the king coin could shift bullish in the short-term as investors are likely to add more order to defend the current price level.
Source: Alphractal
On-chain signals back the case
CryptoQuant’s on-chain data reinforced the aforementioned bullish projections. Bitcoin has recorded a sharp drop in the Number of Sending Addresses — wallets that are moving BTC out, often for selling or transfers.
As seen from the past, a decline in sending addresses usually signals a drop in the number of holders looking to offload their coins, reducing immediate sell pressure on the market.
Source: CryptoQuant
That’s not all — the Coinbase Premium Index data also indicated a noticeable surge in the number of U.S. based investors in recent sessions.
The rising Premium Index, which stood at around 0.041 at press time, pointed to stronger demand from the U.S.-based investors compared to other global exchanges, suggesting renewed institutional or high-volume interest.
Source: CryptoQuant
What the developments mean for BTC
Bitcoin remains at a critical juncture where bulls may try to re-establish momentum after recent pullbacks.
If the Buy/Sell Pressure Delta holds its course in the opportunity zone and on-chain activity continues to reflect easing sell pressure, BTC could rebound back to over 120K once again.