Bitcoin's Next Move: Can BTC Hit $115K?
Bitcoin's Path to $115K: Analyzing Market Sentiment
Bitcoin (BTC) is currently trading near $112.1K, marking a slight 0.36% increase over the last 24 hours. While short-term price action appears bearish, a potential bounce towards $115K remains possible. Here's a breakdown of the key factors influencing Bitcoin's next move.
Market Sentiment: Neutral with Bearish Undertones
The current market sentiment is leaning towards neutral. The Fear and Greed Index registers at 46, indicating a lack of strong bullish or bearish conviction.
Last weekend's pullback from $117K to $109K has left Bitcoin struggling to regain lost ground.
Source: Farside Investors
Spot ETF inflows have been consistently positive since August 25th, a potentially encouraging sign. However, analysts emphasize the need for increased activity in derivatives markets to truly ignite a bullish surge.
The Bullish Case for Bitcoin: Supply in Profit Analysis
Source: CryptoQuant
A recent CryptoQuant analysis highlights that the percentage of Bitcoin supply in profit has reached 90%. This level is often associated with ongoing bull markets.
The analyst, Darkfost, suggests that a high percentage of supply in profit isn't necessarily negative. It can be a driver for higher prices, fueled by market enthusiasm.
Long-term holders should remain patient, awaiting a shift toward more bullish short-term conditions. A drop in the supply in profit below 90% could signal the start of a correction.
Source: Axel Adler Jr on X
Crypto analyst Axel Adler Jr. noted that the market is currently on the edge of bearish territory.
The integrated market index sits at 43%, indicating slight bearishness, though close to neutral. A surge in positive flows within the derivatives sector could quickly reverse this sentiment.
Without increased confidence in derivatives, any attempt to breach the $115K resistance level may only result in a temporary bounce.
Short-term indicators are also bearish, especially if the supply in profit dips below 90%. However, holding above this threshold offers a potential path to recovery for BTC.
Source: BTC/USDT on TradingView
Analyzing the 4-hour chart, Bitcoin's price is approaching the 50-period Moving Average (MA) dynamic resistance at $113K.
The Accumulation/Distribution (A/D) indicator reveals weak buying volume in recent days.
The Moving Average points to bearish momentum, and trading volume has declined alongside the recent price drop.
Disclaimer: Cryptocurrency investments are subject to risk. Conduct thorough research and consult with a financial advisor before investing. Platforms like Codeum offer resources for understanding blockchain security risks and best practices.