Leading cryptocurrency Bitcoin (BTC) broke above the $95,000 psychological barrier on Thursday, driven by renewed confidence among long-term holders.
With key on-chain metrics pointing to a slowdown in exchange-bound inflows, the coin may soon reclaim the $100,000 price mark.
BTC Poised for Further Gains Amid Low Sell-Offs and Rising Demand
According to on-chain data from CryptoQuant, the number of unique wallet addresses sending BTC to exchanges has dropped to its lowest level since 2017. This currently sits at 19,282 addresses, falling by over 60% over the past month.
This metric, commonly interpreted as a measure of sell-side pressure, suggests that fewer investors are looking to offload their holdings, reinforcing the current bullish sentiment in the BTC market.
Historically, low exchange inflows like this have aligned with periods of strong price performance. Reduced selling activity tightens the coin’s supply on trading platforms, driving up BTC’s value.
Moreover, the spike in BTC’s Taker Buy Sell Ratio on leading cryptocurrency exchange Binance adds to this bullish narrative. In a new report, CryptoQuant analyst Amr Taha noted, “the most recent data point shows a sharp increase to 1.142, the highest level in this range.”
This metric measures the ratio of buy orders executed against sell orders in the futures market. A taker buy-sell ratio below one indicates that more sell orders are being executed, suggesting a shift in market sentiment from bullish to bearish.
When this ratio is above one, there are more buy orders than sell orders. This indicates that more market participants are aggressively buying BTC rather than selling it, suggesting a demand-driven market.
The rising ratio on Binance is particularly significant, as it signals growing demand for the coin on the largest cryptocurrency exchange by trading volume. If this trend holds, BTC’s price could continue to climb.
Bitcoin Eyes $100,000 as Bull Power Gains Momentum
On the technical side, readings from BTC’s Elder-Ray Index confirm the strengthening demand for the coin. On the daily chart, the histogram bars of this indicator have expanded in size over the past few days, highlighting an increasing buildup of buying pressure in the market.
The Elder Ray Index measures the strength of buying and selling pressure in the market, using two key components: Bull Power and Bear Power. When the size of its bars increases and its value is positive, it indicates growing buying pressure. It suggests the market is in an uptrend with increasing strength behind the bullish movement.
If this continues, BTC could smash through the resistance at $98,983, reclaim the $100,000 price mark, and charge toward $101,070.
However, if profit-taking activity resumes, this bullish projection will be invalidated. In that scenario, BTC could resume its downward trend, break below $95,971, and trend to $91,851.
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