$7 Billion in Bitcoin (BTC) in 24 Hours: $100,000 Incoming?

U.Today - With $7 billion inflows into the cryptocurrency market in a single day, Bitcoin 's quest to reach the $100,000 milestone has accelerated. This inflow suggests increased interest from both institutional and individual investors, which could pave the way for Bitcoin to break through the psychologically important price threshold.

According to the most recent network flow chart, the Bitcoin network has been experiencing a lot of activity. Increased buying pressure, which frequently coincides with price increases, is indicated by spikes in inflows. When such large quantities reach the market, they typically serve as catalysts for price increases.

Sustained momentum, however, will rely on whether these inflows are accompanied by steady demand or if they slow down and could result in profit-taking. The dashboard for on-chain risk offers vital information about the state of the market. Bitcoin is currently not in the red zone of overvaluation, with a risk level of 0.634. This creates space for additional development.

Yet risk indicators like the RHODL ratio and MVRV Z-score imply that Bitcoin might be getting close to elevated valuation levels, so the coming days will be critical in determining its course. A price chart analysis reveals that Bitcoin is clearly consolidating just below the $100,000 threshold.

The present pause close to this level suggests strong resistance, even though the overall trend is still bullish. Around $86,000, the 50-day EMA offers strong support; bulls must defend this level to keep the market moving higher. There has also been a discernible increase in volume, which supports the possibility of a breakout.

The $7 billion investment in Bitcoin shows how optimistic and in-demand the market is. However, persistent buying pressure and a positive macroeconomic climate are necessary for breaking $100,000. Although on-chain indicators point to potential for expansion, prudence is advised as resistance increases at this crucial stage.

Source: Investing.com