- Bitcoin’s price is at critical resistance levels, which is near $87,600 and $110,242.
- The market sentiment shifts positively as Bitcoin’s selling pressure declines.
- Increased demand and net taker volume indicate a high potential BTC rally ahead.
Bitcoin’s price action has been a subject of much attention lately, as the cryptocurrency demonstrates signs of breaking through its resistance levels. According to a recent analysis by Crypto Aman, BTC has shown a decrease in selling pressure, with market absorption in the $80K to $90K range. As of March 24, the price hovers around $87,600, signaling a potential upward shift if the current trends continue.
The cumulative net taker volume histogram has also reflected increasing demand for Bitcoin, with positive volume trends aligning with this price behavior. These factors suggest a changing sentiment that could result in a bullish phase for the cryptocurrency.
Source: X
Bulls appear strong as the market has absorbed very large sell orders without significant price declines. In the coming days, scenarios will unfold to see whether BTC manages to flow positively or undergoes a short-term retracement. With this volume change, it could signal more buyer interest, paving the way for new highs for Bitcoin.
Breaking Resistance Levels: Potential for New Highs
BTC is following a trendline, having successfully broken an immediate resistance at the $87,400 level. If the trend continues, there is a strong possibility that Bitcoin could challenge its next resistance level at $92,400. This level has been identified as a critical point where Bitcoin’s price could face short-term resistance, but breaking past it would signal a continued upward trajectory.
Source: Tradingview
Technically, Bitcoin appears to establish the 50% Fibonacci retracement level of $87,600 as a support. If BTC can hold above this level and breach through $92,400 resistance, it may be led toward even higher levels, such as $95,574, which is met with further resistance. For traders, price action at these points would be key, as movement above $92,400 could lay Bitcoin in for a significant rally in the coming weeks.
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Volume Trends and Market Sentiment: A Growing Bullish Outlook
Volume trends remain a key factor in understanding Bitcoin’s market sentiment. As noted in the chart analysis, the net taker volume continues to rise, indicating increased demand for Bitcoin. This aligns with the observed price movement, where Bitcoin has successfully resisted downward pressure and maintained stability.
Sentiment analysis supports the bullish sentiment in tandem with decreasing selling pressure. Buyers are overtaking the market since sell orders are being absorbed without a price drop. Should this remain the case, we could see Bitcoin attempting to breach the $92,400 resistance level and trade into unknown price territory. Thus, the growth of optimism in the market is further captured by positive volume dynamics against decreasing selling pressure, setting the stage for possible upward price action.
