Analysis: Bitcoin Buying Pressure Returning, Break Above $78,000 Needed to Reverse Downtrend

BlockBeats News, March 12th, according to Cointelegraph's report, CryptoQuant data shows that as Bitcoin derivatives demand rebounds, Bitcoin's net buy volume indicates buyers are entering the market. Net buy volume is an indicator that measures the imbalance of power between active buyers and sellers in the derivatives market. Since the outbreak of the US/Iran conflict, this indicator has remained positive. This positive trend aligns with Bitcoin's recent price rise to $74,000, indicating a resurgence in demand in the derivatives market. Coinbureau CEO Nic added: "This shows that the buyer's buy volume has exceeded the seller's, and buyers are in control of the market."

TradingView data shows that Bitcoin has been consolidating in the $62,000 to $72,000 range for over four weeks, making multiple unsuccessful attempts to break through $70,000. From a more macro perspective, the BTC price is still trapped between the realized price (average purchase cost of all circulating supply at $54,400) and the true market price (cost basis of active trading coins at $78,000).

Glassnode states: "In the absence of broader macro headwinds, this range may support a relief rally in a bear market, with its upper bound constrained by the true market price." The chart shows that BTC price spent most of 2023 between these two cost levels, with relief rallies repeatedly capped near the true market price. Finally, in October 2023, following the news of the approval of a US Bitcoin spot ETF, the price broke through. Crypto trader and analyst Titan stated that if the BTC price breaks through the $78,000–$80,000 range, it may signal a change in the long-term trend.