Bitcoin Inches Towards $61K But On-Chain Data Turns Bearish

Bitcoin inches towards $61K with a slight choppy action between the $55K and the $58K price region as we can see more in our latest Bitcoin news.

The world’s biggest cryptocurrency was in a choppy action mode for quite some time now but Bitcoin inches towards $61K as we can see on the charts. A few companies dipped into the asset in 2020 with companies like Tesla and Microstrategy picking up billions of dollars worth of BTC. BTC trades above its 34-period exponential moving average and as of press time, the asset is still in a strong uptrend. The EMA is a very popular tool used by traders to determine the market trends and as a dynamic support line.

The previous ATH remains in a strong area of resistance where the traders will step in and make profits instead of holding on for other prices. However, BTC was posting higher lows in the past month and showed investors that they can continue accumulating the asset while the long-term sentiment remains bullish. Despite the strong prices and trending charts, the on-chain data from analytics provider IntoTheBlock, BTC is in the mostly bearish territory which means that the asset could more choppy prices and profit-taking in the week coming.

The “net network growth” is a measure of new addresses and transactions that provides a slight look into the real growth of the network which remained bearish with a 0.45% decrease. The number of “large transactions” on settlements above $100K on the network dropped by 0.12% as well. The bid-ask volume imbalance or the volume of BTC for sale or purchase at the current prices is turning bearish with a 3.05% decrease which suggests buyers are not looking to pay what the sellers want to get for their coins. With that said, Bitcoin futures are showing a bullish sign as their volume and momentum with price activity suggesting that the traders expect a price surge later this week.

On the other hand, the concentration of BTC holders that are accumulating or reducing their positions shows a neutral sign and suggests that the market sentiment is mixed among the whales.