Bitcoin's Price Surge: On-Chain Data Predicts New All-Time High

Bitcoin's recent price fluctuations have sparked interest in the cryptocurrency market, with on-chain data suggesting a potential new all-time high. After a weekend crash to around $91,000, Bitcoin's price has been recovering, a trend that has been observed following previous dips since Donald Trump's election win. This time, however, on-chain metrics are indicating a strong momentum that could push Bitcoin's price to new record highs this month.

In the last 24 hours, Bitcoin saw total liquidations close to $40 million, with an almost equal share between buyers and sellers. Despite this increased volatility, on-chain data is now flashing a positive sentiment for Bitcoin. Exchange reserves are declining aggressively, indicating that people are taking their Bitcoin off exchanges and keeping it themselves. This reduction in available supply could help increase Bitcoin's price in the coming weeks.

There is also a growing interest among large investors, or whales, to buy Bitcoin while its price is around the dip. Since the February 3 crash, the volume of large transactions has increased significantly, jumping from $40.8 billion to $67.3 billion. This indicates that the recent low price has attracted these big investors, creating a strong base of support that could drive Bitcoin's price to new highs.

Additionally, the netflow of Bitcoin is currently around a yearly low, with more Bitcoin leaving exchanges than coming in. This reduction in available supply on exchanges plunges the chances of price drops due to selling pressure. Bitcoin's recent recovery is also being triggered by strong ETF investments, which have pulled in about $2.5 billion over the last two weeks. This influx of funds is helping Bitcoin to potentially reach new all-time highs soon.

The price of Bitcoin is currently struggling to maintain its level around $100K as bears continue to defend the resistance levels strongly. Although it's under downward pressure above $100,000, it could soon break through this barrier. If Bitcoin can surge above the $100,000 mark, it would benefit buyers, potentially pushing the price towards $105,000 or even $109,000. On the flip side, if Bitcoin continues to trade below the EMA20 trend line on the 1-hour chart, sellers might drive the price down to $95,000 for a retest. However, the