Bitcoin has quickly gained investors’ attention, rushing over $110,000, raising concerns about its short-term recovery.
The Crypto King quickly bounced back, rising above $111,800 within a day.
Bitcoin investors move to accumulate
Exchange data reveals that Bitcoin witnessed its strongest accumulation stage in over eight months. Exchange Net Position Change highlights the withdrawal of nearly $8 billion in BTC last week, showing the large investors’ trust in purchasing at discount levels.
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Such accumulation usually indicates optimism about price rebounds. Long-term holders and institutional investors appear to be exploiting Bitcoin’s temporary weaknesses, setting the stage for potential upward momentum. A sharp outflow from exchanges suggests a drop in sales pressure and could stabilize the market in the short term.
Despite this optimism, macro momentum indicators indicate that challenges remain. Bitcoin’s Relative Strength Index (RSI) still sits under the neutral 50.0 mark, suggesting that the bearish momentum is not completely over. This highlights that market conditions could keep the pace of recovery slower than investors expect.
The balance between accumulation growth and prolonged bearish cues suggests a tug of war in the direction of Bitcoin. While a strong influx refers to long-term convictions, the RSI shows that short-term sentiments may struggle with wider market pressures until stronger bullish signals emerge.
BTC prices require push
At the time of writing, Bitcoin was trading at $111,842, which was shy of $112,500 resistance. While recent bounces below $110,000 reflect investor demand, violating key resistance remains important for further promotions.
If Bitcoin rises above $112,500, Crypto King can regain $115,000 as support level. This will help build up investor demand and lower sales pressure on exchanges, opening the door for the rally to the next $120,000.
However, if the $112,500 resistance fails to overcome, Bitcoin will be exposed to further downside risk. It is still possible to return to $110,000 or $108,000. This will override bullish outlook and trigger new skepticism about Bitcoin’s short-term recovery.
