The U.S. released its inflation data on Wednesday, January 12, but this doesn’t seem to dampen the sentiment for Bitcoin investors as of now. Bitcoin is trading in the green zone as of press time at price levels above $43,700.
Whether Bitcoin remains a buy or a sell at this stage remains a big question for many investors. Here’s what some on-chain data and market analysts have to say about it. Looking at the technical chart, popular market analyst Michaël Van de Poppe writes:
Slowly flipping levels for Bitcoin. The level to hold for me is the range around $42.8K. If that sustains, I’m expecting a test of $46K to happen. Just like I said a few days ago; I’d rather long than short.
Furthermore, Bitcoin’s entity-adjust dormancy flow has been bottoming current. During the last five times when Bitcoin traded in this zone, there was a strong price reversal! Thus, the dormancy flow shows that Bitcoin has been entering the buy zone.
Bitcoin entering the Buy Zone on Dormancy Flow.
This bottoming signal has only flashed 5 times before in Bitcoin’s history. pic.twitter.com/0P36jYMzvw
— Will Clemente (@WClementeIII) January 11, 2022
Popular market analyst Will Clemente further explains: “Dormancy is Bitcoin’s market cap compared to the USD value of annualized destruction. (Explanation of destruction can be found in a thread I previously posted) Essentially compares price to spending behavior”.
Bitcoin Exchange Supply
Despite Bitcoin trending sideways over the last few weeks, we reported how the BTC miners have resolved to heavy accumulation. On the other hand, a large number of Bitcoin’s have been moving off exchanges bringing lower the total number of Bitcoins under circulation. On-chain data provider Santiment reports:
Despite Bitcoin being 36% below its #AllTimeHigh 2 months ago, coins continue to move away from exchanges at an impressive rate. The 26.3k $BTC difference between exchange outflow & inflow yesterday is an encouraging sign of less ongoing selloff risk.
If will be keen the weekly close for Bitcoin going ahead and whether if it manages to give a breakout above $46,000 levels.