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- BTC broke its price range with a strong surge above $29,000.
- Supply on exchanges fell to encourage short-term buyers.
Bitcoin [BTC] broke out of weeks of price stagnation with a sharp move above the $29.4K resistance level. Previously, BTC was trading between $28.9k and $29.3k, with demand falling between August 5th and 7th.
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This 3.6 percent rally over the past day increased Bitcoin’s market dominance to 48.94 percent. At press time, the king coin was trading at $29.8k with bulls actively attempting to retake the $30k price level.
Bulls are fueled by capital inflows
Source: BTC/USDT on Trading View
The Chaikin Money Flow (CMF) highlighted the notable inflow of capital into Bitcoin over the past 48 hours. The indicator rose sharply from negative to positive at the time of writing with a reading of +0.07. This prompted a significant rally for buyers to break out of the price range.
Reflecting the renewed buying pressure, the Relative Strength Index (RSI) climbed above the neutral 50 level and traded at 62. These were indications that Bitcoin was seeing a fresh wave of demand after last week’s lackluster price action.
A major hurdle in the form of a bearish order block (OB) in the $30,000 price zone is for the bulls to add more gains. Looking at the 12-hour timeframe showed that the price is down twice on this bearish OB.
As BTC keeps a bearish outlook on the daily timeframe, a break above the $30,000 hurdle will be crucial for the bulls to sustain the upside rally and seek further gains.
Read Bitcoins [BTC] Price prediction 2023-24
Average coin age increased as supply on exchanges decreased
Source: Santiment
Data from Santiment showed that the 90-day moving average age of the coins rose sharply on August 4 after a previous decline. This indicated Bitcoin accumulation, which was reflected in the recent price rally. At press time, the average age of the coins continued to rise, suggesting more buyers were bidding for BTC.
At the same time, the supply on the exchanges fell, which showed that the selling pressure was easing. The evidence suggests that if the bulls can scale the bearish OB, BTC can generate more gains in the near-term.
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