In the wake of some bearish trading sessions, Bitcoin has once again showcased its stability, despite a recent dip. This decline came on the heels of a robust ADP report that has increased the likelihood of the Federal Reserve hiking rates. Interestingly, Bitcoin holders have continued to demonstrate their trust in the digital asset by holding onto their investments, even as the cryptocurrency reached a 13-month high of $31.5K. This steadfast confidence has ignited a fresh wave of optimism in the market, with many experts forecasting a potential rebound for Bitcoin.
Bitcoin Gains Support From Market Leaders
Despite the recent rally observed in Bitcoin’s value, on-chain data reveals a continued decline in the cryptocurrency’s supply on exchanges. This information, provided by on-chain analytics company Glassnode, indicates that withdrawals from exchanges have persisted.
As the Bitcoin rally commenced this year, the exchange balance metric began to stabilize, indicating a resurgence in selling interest. Prior to the peak in April, exchanges experienced a net increase in deposits, leading to a direct rise in their supply.
However, in a fascinating twist, the recent price increase beyond the $30,000 mark has not triggered a selling spree. Instead, the exchange balance has continued to decrease, suggesting that investors are holding onto their assets despite the price surge.
Glassnode’s co-founder, known as “Negentropic” on Twitter, suggests that Bitcoin’s current sideways trading could be setting the stage for a bullish surge toward $34,000. He notes that the ongoing range-bound trading between $31,250 and $29,640 allows for a consolidation period, potentially fueling positive momentum.
With the Swissblock Risk Signal remaining at zero, he indicates there’s still potential for upward movement, potentially breaking above $31,250 and targeting resistance levels at $33,000 and $34,850.
What’s Next For BTC Price?
Today, Bitcoin managed to surpass and maintain a closing above the $31,500 mark, although the bulls failed to capitalize on this momentum, indicating that the bears are still in the game. BTC’s price quickly declined following the ADP report, and it broke below the $30.5K mark. As of writing, Bitcoin price is trading at $30,087, declining over 1% in the last 24 hours.
The 100-day exponential moving average at $29,997 is a critical level to monitor on the downside. A rebound from this level would imply that bulls are seizing the opportunity to buy on the dips.
This could potentially boost the chances of breaking through the overhead zone of $31,500 to $32,500; however, it may encounter significant resistance from the bears. If bulls become successful in pulling the price, the BTC price could escalate to $40,000.
However, this optimistic outlook could be short-lived if the price takes a downturn and drops below $29,948. This could potentially drag the price down to the crucial support zone near $27K.