As Bitcoin continues to fluctuate within a narrow price range between $41,800 and $43,900, market observers are analyzing key indicators that indicate potential upward momentum for the leading cryptocurrency. Despite a modest 0.3% decline over the past week, new data points to several positive catalysts that could fuel a near-term rally.
Inflow surge: BTC investment products attract $702 million
Amid market uncertainty, Bitcoin investment products have seen a significant surge in inflows, with CoinShares reporting an impressive 99% share of total inflows. Bitcoin, in particular, welcomed about $703 million in new inflows, bringing global assets under management in the cryptocurrency space to a whopping $53 billion.
This trend is further highlighted by the gradual slowing of Grayscale’s GBTC ETF outflows, which could potentially signal a reversal of previously prevalent negative market sentiment.
Miner holdings rebound: selling pressure eases
After a significant sell-off by Bitcoin miners through the end of January, recent data shows that this trend has reversed. On February 1, Miner Netflow Total showed that over 2,400 BTC positive figures were added to miners’ reserves in the last 24 hours. This upward trend suggests that selling pressure is waning from market participants in this sector.
Also Read: Bitcoin Halving: Analysts Predict a Future Where BTC Could Surpass Gold at $500,000
However, while the Miner Position Index (MPI) remains above 1, indicating moderate selling behavior, the continued increase in miner reserves over the next few weeks could lead to a decline in the MPI index, which could signal a shift towards holding behavior among miners. I mean.
On-Chain Revenues Soar: Bitcoin Fees Soar 35%
Against the backdrop of market consolidation, on-chain profits Bitcoin There was a notable spike in fees last week, with fees rising by 35.71%. The surge in on-chain revenue reflects the growing demand for network utilization, which indicates a potential expansion of the user base. As users show a willingness to pay higher fees for transaction inclusion, this hints at positive market dynamics that could potentially drive Bitcoin’s momentum on the charts.
Momentum Recovered: Bitcoin Reaches 50-EMA
As Bitcoin charts its course, recovering a critical technical level is essential to maintain upward momentum. Currently, Bitcoin is looking at resistance at $44,500 and immediate support remains at $38,500.
Despite the recent volatility, Bitcoin briefly fell to the $38,500 support level on January 23 before regaining its 50 exponential moving average (EMA). This resilience highlights the potential for Bitcoin to retest the $44,500 resistance level if the current bullish momentum continues.
disclaimer: The views expressed in this article are for information purposes only and should not be considered financial advice. Readers are advised to conduct thorough research and seek professional advice before making any investment decisions.