Bitcoin price prediction: On-chain metrics point to strong demand despite PPI shock
Bitcoin tests $100K support with bullish RSI but bearish risks
Bitcoin’s struggle to maintain its footing above $100,000 has captured market attention. After briefly touching $102,000 on December 12, the cryptocurrency reversed course, forming a bearish engulfing pattern on the 4-hour chart following hot PPI data.
Despite this, Bitcoin remains resilient, trading near the psychological milestone, bolstered by unprecedented capital inflows and robust on-chain metrics.
BTC price dynamics (November-December 2024). Source: TradingView.
On-chain data revealed a surge in investor commitment to Bitcoin. The cryptocurrency’s Realized Cap, representing the total cost basis of circulating BTC crossed $768 billion. This year alone, approximately $80 billion has poured into Bitcoin every month, according to CryptoQuant CEO Ki Young Ju. Remarkably, nearly half of Bitcoin’s total investment over its 15-year history occurred this year, signaling accelerating demand from both retail and institutional investors. Supporting this influx, Glassnode data also showed that Bitcoin investors have realised $1.27 trillion in cumulative profits versus $592 billion in losses. This net positive outcome highlights growing confidence in the asset.
Bitcoin analysis: RSI signals bullish momentum despite bearish reversal
Technical indicators provide mixed signals as Bitcoin navigates its current range. The Relative Strength Index (RSI) remains above 50, suggesting lingering bullish momentum. However, the bearish engulfing pattern on the 4hr chart reflects potential downside risks if Bitcoin fails to maintain its position above $100,000. Traders should monitor these levels closely, as a breach could expose Bitcoin to a decline toward $92,000, the lower end of its trading range.
Bitcoin’s next move hinges on its ability to sustain $100,000 as a support level. Success here could pave the way for a retest of $103,500, its recent high, while failure risks deeper retracements. With robust on-chain metrics indicating strong demand, the coming sessions will likely determine whether the asset can reclaim its upward trajectory or remain in its prolonged consolidation phase.
Bitcoin recovers past the $100,000 mark, coupled with a 7% surge to a six-day high. Following this is the decline in Coinbase's dominance alongside the rise of Bitcoin ETFs.
