Analysis suggests Bitcoin may experience a substantial rally this week if other adverse market catalysts do not interfere amid cooling sell-offs.
Bitcoin, the largest cryptocurrency by market cap, posted its second consecutive positive weekly closing for the first time since the week of its rally to its current all-time high of $109,300. This bullish closing follows a 4.24% growth to reclaim $86,000.
Notably, the premier crypto asset started on a strong foot this week, up over 2.7% today. Interestingly, recent analysis suggests the asset may continue its current bullish traction amid dwindling selling pressure.
Dwindling Selling Pressure
Axel Adler Jr., an analyst and verified CryptoQuant author, has highlighted a positive development that could fuel the rebound this week. In a March 24 X post, he noted that the selling pressure on Bitcoin has recently reduced, a strong bullish indication.
The prominent market watcher pointed to data from the Bitcoin Cumulative Net Taker Volume, an on-chain metric that shows the difference between taker buys and sells. For more context, the parameter tracks the sell and buy volume and highlights which is higher than the other.
A higher Bitcoin buy volume turns the metrics positive, and a larger sell does the converse. Notably, it helps track the market sentiments around keeping or dumping an underlying asset, in this case, Bitcoin.
Adler Jr. noted that the taker sales have dwindled over the last few months, signaling a reduction in the aggressive selling pressure noticed earlier in the year.
For perspective, an accompanying chart shows that the depth of a net taker sell volume in the 24-hour timeframe has steadily diminished from minus $1.6 billion on February 26 to just around a negative $250 million.
With the figures steadily depreciating, the analyst suggests Bitcoin could be up for a moderate rally this week. However, he noted that an adverse macroeconomic factor or other notable market catalyst would invalidate this proposed upward trajectory.
$110,000 Next?
Meanwhile, Bitcoin has already shown signs of a major rally today, surging past $88,000 for the first time since March 7. At the time of writing, the asset trades at $88,670.
While the CryptoQuant author did not mention the target for this rally, Arthur Hayes, co-founder of BitMEX, has asserted that a break past Bitcoin’s current all-time high to $110,000 looks most probable from here.
He cited the bias shift in the Federal Reserve System (Fed) from quantitative tightening (QT) to quantitative easing (QE). This follows Chair Jerome Powell’s disclosure last Wednesday that the central bank will cut rates twice this year.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
