Bitcoin (BTC) currently trades within an ascending channel. The rally in the past few days has pushed the leading coin’s price toward the upper line of this channel.
If the coin successfully crosses above this line, it will have breached a key resistance level of $72,690.
Bitcoin “Big Boys” Weigh In
Bitcoin’s recent rally above $70,000 is partly due to the uptick in the coin’s whale activity over the past few weeks.
On-chain data reveals a significant increase in the number of large daily transactions over the past 30 days. BTC transactions valued between $100,000 and $1 million have surged 9% during this period.
Even more notable, transactions valued above $10 million have skyrocketed by 165% in the last month.
Bitcoin Whale Activity. Source: IntoTheBlock
Upticks like these in BTC transactions suggest increased participation from institutional investors, such as hedge funds, investment firms, and corporations, during the period under review.
This attention from this cohort of BTC investors played out on June 4 when the US-based spot BTC ETFs recorded its 15 consecutive days of inflows, Bloomberg Intelligence senior ETF analyst Eric Balchunas noted in a post on X.
“The ability to bounce back w/ renewed interest after a couple nasty selloffs is rare for hot sauce type strategies. Shows staying power.” Balchunas added.
However, general market sentiment around the leading crypto continues to be negative. On-chain data showed that despite BTC’s recent price performance, its weighted sentiment has been negative since May 23.
Also Read: Bitcoin Halving Cycles and Investment Strategies: What To Know
Bitcoin Weighted Sentiment. Source: Santiment
With a weighted sentiment of -0.3 when writing, there was more negative chatter than positive around BTC on social media.
BTC Price Prediction: Is Demand Losing Steam?
At press time, BTC’s Relative Strength Index (RSI) was in an uptrend. This indicator measures an asset price momentum.
It oscillates between 0 and 100 and is used to identify overbought or oversold market conditions. At 64, the indicator’s value showed steady demand for BTC.
However, BTC’s declining Chaikin Money Flow (CMF) forms a bearish divergence that hints at a potential price dip. This indicator measures money flow into and out of an asset’s market.
When it declines when an asset’s price rises, a bearish divergence is formed. This divergence suggests that despite the rising price, buying pressure is decreasing, indicating a potential price decline.
Bitcoin Analysis. Source: TradingView
If this trend continues, and the CMF continues to record lower values, BTC may eventually retrace and slip back to $68,180.
Bitcoin Analysis. Source: TradingView
However, if buying pressure regains momentum and spikes, it will push the coin’s price above resistance at $72,690.
