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Bitcoin [BTC] Attempts Another Breakout of Resistance: Will It Break $30,000?

  • Bitcoin saw a higher net outflow despite large exchange outflows.
  • The retest of support prompted some selling pressure, but the long-term holders were still strong.

Bitcoin [BTC] peaked at $29,380 on March 24 before a resurgence in selling pressure. Almost a week later, the bulls are once again showing their strength.

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Bitcoin has rebounded above $29,000 in the last 24 hours, raising bullish hopes that it will soon surpass $30,000. But how likely is that outcome before the end of the week, especially now that the price is struggling with resistance?

Recent market observations can provide some insights into what to expect. For example, on March 30, Glassnode announced that Bitcoin’s supply percentage was last active 1+ years at a new ATH.

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📈 #Bitcoin $BTC Percent Supply Last Active 1+ Years just reached 68.090% ATH

View metric: https://t.co/1j255TMTVz pic.twitter.com/cpiDmxXEjT

— Glassnode Alerts (@glassnodealerts) March 30, 2023

The Glassnode observation suggested that the amount of HODLed Bitcoin was still increasing. However, there has also been strong selling pressure in recent days. Bitcoin daily on-chain exchange outflow peaked at $1.1 billion while inflows were lower at $921 million. The cryptocurrency has therefore experienced more selling pressure.

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📊 Daily on-chain exchange flow#Bitcoin $BTC
➡️ $921.0M
⬅️ $1.1 billion out
📉 Net Flow: -$148.1M#Ethereum $ETH
➡️ $580.6M
⬅️ $444.9 million out
📈 Net Flow: +$135.7M#Tether (ERC20) $USDT
➡️ Raised $646.1M
⬅️ $851.7 million out
📉 Net Flow: -$205.6Mhttps://t.co/dk2HbGwhVw

— Glassnode Alerts (@glassnodealerts) March 30, 2023

Will Bitcoin Bulls Give In To Dominant Selling Pressure?

A look at Bitcoin’s press time explained why it had come under selling pressure. The upward movement, particularly over the past 24 hours at press time, has been pushing back into the ascending resistance line. As such, many investors have taken profits, triggering the pullback to the price at press time of $28753.

Source: TradingView

Bitcoin is likely to come under selling pressure as the resistance line is retested. Enough selling pressure can trigger more downside moves, while bullish dominance can surpass resistance and potentially push above $30,000.

Looking at the stock market data, both inflows and outflows have decreased significantly over the past 24 hours. However, exchange outflows were slightly dominating at 22,178 BTC compared to exchange inflows of 20,548 at the time of writing.

Source: CryptoQuant

How much is 1,10,100 BTC worth today?

Investors should also note that Bitcoin’s open interest in the derivatives market has returned to its two-month high, suggesting that there has been strong demand for BTC in the derivatives market. This increase has been accompanied by an increase in demand for leverage, as reflected in the estimated leverage ratio.

Source: CryptoQuant

Most recently, both key figures reached a high on March 19th. Some selling pressure followed, but not enough to trigger a major pullback. The fact that the same metrics are back around the same levels confirms the relative strength, but the bears may not be far behind.

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