BTC price could rise to $115,000 as investors withdraw Bitcoin from exchanges
Bitcoin is back in the spotlight after a sharp drop below $110,000, raising concerns about its short-term recovery.
The king of cryptocurrencies quickly recovered its losses, rising above $111,800 during the day. Growing investor confidence could pave the way for another rally.
Bitcoin investors in accumulation mode
Exchange data shows that Bitcoin is experiencing its most active accumulation phase in eight months. Over the past week, 70,956 BTC, worth almost $8 billion, have been withdrawn from exchanges, indicating widespread investor confidence in buying at discounted prices.
Such accumulation typically signals optimism about a price recovery. Long-term holders and institutional investors appear to be exploiting the cryptocurrency's temporary weakness, creating conditions for potential growth. Sharp outflows from exchanges also indicate a reduction in selling pressure, which could stabilize the market in the short term.
Bitcoin's net position on exchanges. Source: Glassnode
Despite the optimism, macroeconomic indicators point to challenges. Bitcoin's relative strength index (RSI) is still below the neutral 50 mark, indicating that the bearish trend has not yet run its course. This highlights that market conditions could slow the recovery more than investors expect.
The balance between growing accumulation and bearish signals points to a struggle over Bitcoin's trend direction. While strong inflows indicate long-term confidence, the RSI shows that short-term sentiment remains under pressure until stronger bullish signals emerge.
Bitcoin Relative Strength Index. Source: TradingView
BTC Forecast: Price Needs a Boost
At the time of writing, Bitcoin was trading at $111,842, slightly below resistance at $112,500. The recent rebound from below $110,000 reflects investor demand. However, the coin needs to overcome this resistance to continue its upward movement.
If BTC breaks $112,500, it will have a chance to recover above $115,000 as support. This will pave the way for a rally to $120,000 in the coming days, fueled by growing investor demand and reduced selling pressure on exchanges.
Bitcoin Price Analysis. Source: TradingView
If Bitcoin fails to break through this barrier, it faces a decline to $110,000 or even $108,000. This would invalidate the bullish outlook and raise further doubts about Bitcoin's short-term recovery.
Source: cryptonews.net
