What to know:
- Bitcoin price needs to clear $65,800 before targeting $73,700 and eventually $82,900.
- The analyst cites bullish MACD and RSI divergences as Bitcoin tests the $65,800 level.
- Exchange reserves rise to 2.71 million BTC as spot demand and accumulation stay weak.
Bitcoin price traded near $65,100 on Aug. 10 after another attempt to hold above the key level. In an X post, analyst Michaël van de Poppe identified $65,800 as the key weekly resistance. Exchange data showed modest 30-day accumulation, while rising reserves increased the supply available for trading.
BTC remained rangebound despite the failure to transform the $65,000 mark into support. The market focused on the ability of the cryptocurrency to finish the week above its major resistance level.
Why Bitcoin Price Needs to Clear $65,800
Van de Poppe noted that a break above the $65,800 level will unlock further gains. The next goals would be $73,700 and $82,900.
Also Read: Bitcoin Whales Accumulate as Price Eyes $65,000 Breakout
The analyst referenced momentum indicators across longer timeframes. Both the three-day and the weekly MACD indicators gave bull divergences. The RSI also indicated this divergence.
A bullish divergence occurs where the prices fall while the indicator moves up. Traders see this pattern as proof that the down momentum is losing strength. This doesn’t mean that a reversal is coming, though.
According to Van de Poppe, the signals match the signals generated during the bottoming out in Bitcoin price last year. He also referenced breakouts in several altcoins with the same momentum patterns.
Liquidity for long positions has been flushed out more than once. But in each instance, there hasn’t been a move lower in Bitcoin, according to the analyst. He anticipates a volatile movement if prices break above $65,800 and short positions get closed.
Van de Poppe set the first target at $73,700. His second target of $82,900 sits near Bitcoin’s 50-week moving average. He said reaching that level would signal the end of the bear market.
Spot Flows Show Limited Bitcoin Demand
The CoinGlass showed a negative netflow of $412 million in 30 days. Negative netflow shows more withdrawals than deposits. This is often a sign of net buying or transfer to private custody.
The figure remained below levels recorded during stronger accumulation periods. Over the past 50 days, negative netflow peaked at $1.10 billion. The data showed outflows, but not at the scale linked to a strong bull market.
The short-term netflow took a different course. Bitcoin generated a positive netflow of $182 million in 15 days. Positive netflow figures mean deposits to exchanges were more than withdrawals.
Netflow to exchanges increases the availability of coins to trade on exchanges. Nevertheless, the netflow does not indicate whether the deposits were made with intentions to sell the coin or not.
What Do Rising Reserves Mean for Bitcoin Price?
According to CryptoQuant data, Bitcoin exchange reserves increased up to 2.71 million BTC. The increase resulted in an increased availability of coins to be traded, although deposit inflows do not mean that holders are willing to sell them.
Investors often move Bitcoin to exchanges in advance before selling it. Withdrawal flows typically involve moving assets to private wallets, custodians, or off-exchange custody.
Bitcoin price remains between the recovering momentum indicators and low spot demand. A successful weekly breakout above $65,800 will increase the bullish probability. Otherwise, Bitcoin stays in the same range.
Also Read: Bitcoin Fork BIP-110 Mines Two Blocks Before Stalling 48 Blocks Behind
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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