Bitcoin price is struggling to breach the $110k barrier for the third day in a row, as investors hope for a potential new all-time high in the near-term. The crypto market bellwether traded at $109,331 at press time, with its 25-hour trading volume down by 11%. At its current level, BTC is about 2% below its record highs, and the fact that it has gained 3.7% in the last week makes a new ATH a viable target in the near-term.
Notably, BTC price momentum faces downward pressure near the psychological $110k mark. The value of open interest contracts has declined by 0.45% in the last 24 hours, signaling a weakening buying appetite. Also, according to IntoTheBlock, net flow into exchanges have risen from -$362.9 million to +$94.18 million in the last two days, which hints to the potential increase in sell-side pressure. In addition, 99% of BTC holders are currently “in the money”, hinting at a high incentive to sell.
However, unlike the 2021 bullish market rally, the current market upsurge is primarily driven by strong institutional appetite. Unlike retail investors, whales are typically slow to take profit when asset prices cross above break even points. That will likely see them wait until new all-time highs or when the market signals overheating. According to data aggregation site, CryptoQuant, about 550,000 BTC have recently exited exchanges, which points to a likely accumulation by the whales. A continuation of the same could see Bitcoin price reclaim the $110k support and potentially hit ATH in the short-term.
Bitcoin Price Prediction
Bitcoin price pivot mark is at $109,100 and action above that level signals control by the buyers. Primary resistance will likely be at $109,960. However, an extended control by the buyers will break above that level and could potentially push the price higher to test $110,610.
Conversely, the momentum will likely shift to the downside if the price breaks below $109, 100. In that case, the first support is likely to be at $108,380. Breaking below that level will invalidate the upside narrative. Furthermore, an extended control by the sellers could send the price lower to test $107,620.
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