After a significant drop below $110,000, Bitcoin is once again attracting investor interest, raising concerns about its short-term recovery.
The crypto leader has quickly rebounded, climbing above $111,800 within a day, as increasing signs of investor confidence suggest that this support may drive the next rally.
Bitcoin Investors Move To Accumulate
Data from exchanges indicates that Bitcoin has entered its strongest accumulation phase in over eight months. Recent exchange net position changes show that in the past week, 70,956 BTC worth nearly $8 billion has been withdrawn, highlighting significant investor confidence in purchasing at lower price points.
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This level of accumulation generally signals optimism about a price rebound. Long-term holders and institutional investors seem to be leveraging Bitcoin’s temporary weakness, preparing for potential upward momentum. The sharp outflows from exchanges also indicate a decrease in selling pressure, which may help stabilize the market in the short term.
Despite the positive sentiment, macro momentum indicators reveal that challenges lie ahead. Bitcoin’s relative strength index (RSI) continues to hover below the neutral 50.0 mark, indicating that bearish momentum isn’t completely finished. This suggests that market conditions might hinder recovery speed more than investors expect.
The conflict between rising accumulation and persistent bearish signals illustrates a struggle for Bitcoin’s direction. While significant inflows reflect long-term conviction, the RSI indicates that short-term sentiment could still face challenges from broader market forces until stronger bullish signals materialize.
BTC Price Needs A Push
Currently, Bitcoin is trading at $111,842, just below the $112,500 resistance line. The recent uptick from below $110,000 signifies investor demand, but crossing key resistance remains essential for gaining upward momentum.
If Bitcoin can surpass $112,500, it could establish $115,000 as a support level. This would pave the way for a rally toward $120,000 in the coming days, driven by increasing investor demand and decreased selling pressure on exchanges.
However, failing to break through the $112,500 resistance could expose Bitcoin to additional downside risks. A potential drop back to $110,000 or even $108,000 is possible. This would undermine the bullish outlook and reignite concerns about Bitcoin’s short-term recovery.
