Bitcoin Bullish Price Action Slows As It Approaches Pre-ETF High at $50K
The price of Bitcoin is approaching $50,000, but metrics are showing an increase in the BTC outflow in recent days as buyers cash out from earlier positions. However, buyers still remain in control, with the price approaching January’s high, so will we see $50K soon or is it too much for Bitcoin buyers right now?
Cryptocurrencies surged early in January, ahead of the SEC approval of the BTC ETF, but they couldn’t keep the gains and they retreated in the next two weeks. BTC tumbled below $40,000, falling to $38,600, but it found support at the 100 SMA (green) on the daily chart, as shown above. The price pierced that moving average but couldn’t close below it and eventually BTC/USD bounced higher.
The 50 daily SMA (yellow) acted as resistance for some time, but that moving average was broken this week, and the buyers became optimistic, so the upside picked up momentum. However, the price stopped at 48,289 on Friday and retreated lower to close the day near $47,000. Yesterday buyers couldn’t reach that level and one of the reasons might be the increase in outflows as investors cash in.
Bitcoin Metrics
An analysis of Bitcoin supply on exchanges indicates an increasing outflow since February 7th, with the supply on exchanges falling from approximately 1.05 million to 1.04 million. This represents the lowest level in the preceding since early November. This finding aligns with other statistics, which also show a reduction in supply on exchanges. However, a decrease in exchange supply forms a perception of scarcity among investors, which could potentially contribute to a positive price trend in the following week. So, we might even see the $50,000 level being reached soon.
Bitcoin BTC Live Chart
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