The United States released its inflation data on Wednesday, January 12, but this does not appear to have dampened sentiment among Bitcoin investors for now. Bitcoin is trading in the green zone at press time at prices above $43,700.
Whether Bitcoin is still a buy or sell at this stage remains a big question for many investors. Here’s what some on-chain data and market analysts have to say about it. Looking at technical charts, famous market analyst Michaël Van de Poppe write:
Slowly level up for Bitcoin. The level to hold for me is the range around $42.8K. If that holds up, I’m expecting a $46K test to happen. Like I said a few days ago; I’d rather be long than short.
Furthermore, Bitcoin’s entity-adjusted inactivity stream is currently bottoming out. In the last five times when Bitcoin traded in this area, there was a strong price reversal! Thus, the inactive stream shows that Bitcoin has entered a buy zone.
Bitcoin Enters a Buy Zone in the Sleepy Flow.
This bottoming signal has only flashed five times before in Bitcoin’s history. pic.twitter.com/0P36jYMzvw
– Will Clemente (@WClementeIII) January 11, 2022
Renowned market analyst Will Clemente further explained: “Dormancy is the market capitalization of Bitcoin relative to the USD value destroyed every year. (An explanation of the destruction can be found in a thread I previously posted) It’s basically comparing price to spending behavior.”
Bitcoin exchange supply
Although Bitcoin has been trending sideways for the past few weeks, we have reported how BTC miners have solved the problem of multiple accumulation. On the other hand, a large amount of Bitcoin has moved off the exchanges reducing the total number of Bitcoins in circulation. Santiment provides online data report:
Regardless of Bitcoin less than 36% #AllTimeHigh 2 months ago, coins continued to move away from exchanges at an impressive rate. 26.3k $BTC yesterday’s difference between forex and inflows is an encouraging sign that there is less risk of a sell-off taking place.
If you are interested in the weekly close for Bitcoin and whether it manages to give a breakout above $46,000.