Bitcoin (BTC) Price Movements Under Close Watch as Recent Data Reveals a Notable Rise in Net Capital Inflows

Bitcoin [BTC] price movements are under close watch as recent data reveals a notable rise in net capital inflows, pointing to potentially higher prices ahead.

Bitcoin [BTC] price movements are being closely monitored as recent data reveals a significant increase in net capital inflows, indicating potential for higher prices.

Over the last 30 days, capital inflows into Bitcoin have surged by $21.8 billion, marking a 3.3% increase and pushing Bitcoin’s realized cap to a new all-time high of over $646 billion.

This growth indicates a rise in liquidity throughout Bitcoin, and with increased capital backing the asset, Bitcoin could be positioned for a substantial price rally.

Source: Glassnode

Weak hands out as BTC retests breakout level

The price dynamics of Bitcoin this week show weak hands may have exited the market, creating an atmosphere for new capital to spearhead the next major move.

At the start of the week, BTC saw a decline, prompting some traders to take aggressive long positions in hopes of catching a rebound.

This created a scenario where BTC trapped some of these longs, leading to further selling pressure.

However, following this shakeout, Bitcoin’s price quickly recovered, signaling that the exit of weaker hands may have bolstered the market strength.

Source: Hyblock Capital

In terms of technical indicators, BTC has recently retested its descending trend channel, which has acted as a key resistance for over eight months.

A breakout from this channel with a successful retest suggests Bitcoin may continue its upward trajectory.

BTC reached this trend channel’s upper limit earlier, testing the $69.5K zone but ultimately pulling back.

Source: TradingView

Despite this rejection, Bitcoin has since rebounded strongly off the breakout level, with yesterday’s daily close as at press time, coming in bullish.

This move could be the confirmation traders were looking for, potentially setting the stage for a rally that could challenge previous highs.

New holders to determine next move

Finally, the actions of new investors appear to be crucial in determining Bitcoin’s next major price direction.

Historical data suggests that when unspent transaction outputs (UTXOs) — a measure of Bitcoin held for less than six months — show a sharp increase following a pause, Bitcoin usually sees significant price growth.

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Recent data highlights a clear trend, indicating BTC’s price may be set for an upward move. Record-level capital inflows and aligned technical indicators make a BTC breakout look increasingly probable.

Source: CryptoQuant

As Bitcoin’s liquidity and capital levels climb, and with weak hands largely out, BTC may be set for further upward trajectory. The coming weeks will be telling, and traders will be watching for signs that BTC is ready to reach new highs.

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