Is Bitcoin Bull Run on Track or It is Just Another Bullish Trap – Know More Her
Bitcoin price appears to have regained the lost momentum but the on-chain fractures despite the other side of the story. Undoubtedly, the price broke above the crucial resistance at $20,800 to mark highs close to $21,500, but the reason behind the spike may not support a continued upswing required to reach the crucial resistance at $22,500.
The speculation of a short-term bounce does not rely on the fact that the BTC price is witnessing a minor correction or facing constant rejections at $21,000. But the on-chain data points out the possibility of a bullish trap being laid out.
The exchange’s net flows which is the difference between the inflows and the outflows are surging towards the north. The values that maintained along the average levels, plunged hard indicating a huge flush out of tokens of exchanges.
However, the net flows surged heavily in the next couple of days as huge BTCs entered the wallets of exchanges. The supply on exchanges surged heavily to hit $29.32 billion at the same time with the number of BTC leaving the exchanges was very negligible.
Hence it can be assumed that the traders have kept their tokens on the exchanges, maybe to liquidate at the right time. This also points out the short-term holding which may drag the price lower in the coming days. Retail traders do not seem to have held a significant role in the recent price jump.
As the BTC price surge appears to have been fueled by an institution or an organization that has insider knowledge of bullish news or Looking for exit liquidity that may create a FUD in the market. Therefore, the market participants are required to keep a close watch on the Bitcoin (BTC) price rally for the next 24 to 48 hours.