Bitcoin continues to demonstrate strong investor demand despite recent bearish price movements. On-chain metrics reveal increasing accumulation even as BTC trades between $90,000 and $105,000.
Strong Institutional Interest Persists
Recent analysis from CryptoQuant expert Darkfost shows sustained bullish sentiment. Long-term holders and institutions keep accumulating BTC. This signals continued faith in Bitcoin’s long-term value proposition.
The Exchange Inflow/Outflows Ratio has dropped near level 1. This indicates dominant outflows from exchanges. Professional traders view this as a bullish signal. Lower ratios typically correlate with stronger underlying demand.
Technical Analysis Points to Potential Reversal
Historical data suggests Bitcoin often sees upward price movement when the inflow/outflow ratio enters high-demand zones. A continuation of current trends could trigger recovery toward $100,000.
The RHODL Ratio shows increasing short-term holder participation. This metric helps identify market cycle turning points. Current readings align with late-stage bull run patterns.
Market Implications
Several factors support a potential bullish reversal:
- Strong institutional accumulation continues
- Exchange outflows dominate inflows
- Growing short-term holder base indicates broader market participation
- Historical patterns suggest possible upward movement
However, investors should note that some outflows relate to ETF and institutional transfers. The market remains subject to macro uncertainties.
Advertisement
Trade Bitcoin with up to 100x leverage on DeFX. Access advanced trading features and deep liquidity.
The combination of strong demand and technical indicators suggests Bitcoin could see renewed momentum. However, traders should maintain cautious positioning given recent market volatility.
Tags: Bitcoin, Cryptocurrency Markets, Technical Analysis, Institutional Investment, Market Analysis
Source: Bitcoinist