Bitcoin price has kicked off its recovery after the January 5th market crash. There is an exponential surge in purchasing activity as investors accumulate the asset. As buying activity escalated, a total of $7.8 billion worth BTC was bought over the past week. The demand across crypto exchanges catalyzed the asset’s price to break above $42k resistance.
The current resilience appears to be the commencement of a new uptrend channel for the flagship asset. Currently, the Bitcoin price is on a deck to reclaim the price ranges above $55k, but it has to break the near-term resistance of $47k to confirm the upward move.
As the asset is not of the woods yet, significant buy-pressure is building up. And some of the bears are striving to close their positions to cover the shorts.
Will Bitcoin Price Break $47k?
Bitcoin is rolling in money with a generation of seven-days high and crossing out the past couple of days’ losses. The below chart from the on-chain metric platform Cryptoquant illustrates that BTC supply on exchanges has plummeted to record lows.
Whilst the price was trading below $42k on Wednesday, crypto exchanges have observed an outflow of a one-month high of 57,905 BTCs. When a similar crash happened in December, the asset has experienced considerable accumulation followed by its price action.
Further, the reserve flows keep declining, miners reserves keep increasing. The move confirms that miners aren’t just holding the asset, but seem to be enriching their BTC bags. The current accumulation could push the weekly close above $45k. And the move would wide-open the gateway to test the crucial resistance of $50k.
Collectively, the Bitcoin price appears to be back on track after a prolonged bearish cycle. The on-chain metric reveals that when demand is increasing, we can expect an explosive price action due to the supply squeeze. Hence, aggressive accumulation from here is likely to park weekly close above $45k.
Source: https://coinpedia.org/bitcoin/bitcoin-price-breaches-critical-support/