Bitcoin is once again capturing investor attention after a sharp dip below $110,000, raising concerns about its near-term recovery.
The crypto king has bounced back quickly, climbing above $111,800 within a day, as growing signs of investor conviction suggest that support may fuel the next rally.
Bitcoin Investors Move To Accumulate
Exchange data reveals that Bitcoin has witnessed its strongest accumulation phase in more than eight months. The exchange net position change highlights that in the past week, 70,956 BTC worth nearly $8 billion has been withdrawn, indicating large-scale investor confidence in buying at discounted levels.
Such accumulation typically signals optimism about a price rebound. Long-term holders and institutional investors appear to be capitalizing on Bitcoin’s temporary weakness, setting the stage for potential upward momentum. The sharp outflows from exchanges also suggest reduced selling pressure, which could stabilize the market in the short term.
Despite this optimism, macro momentum indicators show that challenges remain. Bitcoin’s relative strength index (RSI) is still sitting below the neutral 50.0 mark, suggesting that bearish momentum is not entirely over. This highlights that market conditions could keep the pace of recovery slower than investors anticipate.
The balance between growing accumulation and lingering bearish cues suggests a tug-of-war for Bitcoin’s direction. While strong inflows point to long-term conviction, the RSI shows that short-term sentiment may still struggle against broader market pressures until stronger bullish signals emerge.
BTC Price Needs A Push
At the time of writing, Bitcoin was trading at $111,842, which was just shy of the $112,500 resistance. The recent bounce from below $110,000 reflects investor demand, but breaching key resistance remains critical for further upside momentum.
If Bitcoin successfully climbs past $112,500, the crypto king could reclaim $115,000 as a support level. This would open the door for a rally toward $120,000 in the coming days, fueled by accumulating investor demand and reduced selling pressure on exchanges.
However, failure to overcome $112,500 resistance would expose Bitcoin to further downside risks. A drop back to $110,000 or even $108,000 remains possible. This would invalidate the bullish outlook and trigger renewed skepticism about Bitcoin’s near-term recovery.
The post $8 Billion in Bitcoin Accumulation Could Drive BTC Price To $115,000 appeared first on BeInCrypto.