Bitcoin Buying Pressure Increases by 59% — Will It Break the $89,000 Barrier?

Despite experiencing a sideways trend throughout December, Bitcoin’s price is now facing a significant resistance level. Meanwhile, recent trends indicate that buying pressure could lead to a breakthrough.

Key Takeaways

Bitcoin price has lacked direction in December; however, recent trends show increasing buying pressure.
Whale accumulation and exchange outflows are key indicators of this uptick in demand.
The resistance level at $89,250 remains critical; a breakthrough could lead to significant upward movement.
Key support levels to watch are $87,590 and $83,550, with a potential decline to $80,530 if selling intensifies.

Bitcoin's price has increased about 5% over the past month, although it has remained mostly stagnant in the past week, signaling some hesitation in the market. However, fresh on-chain data suggests a possible shift in momentum, particularly in the spot market. Increased buying pressure raises an important question: Is this what Bitcoin needs to finally overcome its strongest near-term resistance?

Rising Whale Accumulation and Exchange Outflows Indicate Higher Buying Pressure

Two key on-chain indicators have emerged recently: the behavior of whales and the flow of coins from exchanges.

First, the number of entities holding at least 1,000 BTC has started to rise again after a notable drop on December 17, which highlights activity among large holders, or whales. When this number increases, it signals that larger players are accumulating Bitcoin rather than selling. Since December 20, the count of these large holders has been steadily increasing. Although the numbers are still slightly below recent six-month peaks, the upward trend is encouraging, as whales appear to be cautiously increasing their exposure during a period of price stabilization.

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Secondly, the exchanges' net position change has shown a significant uptick in buying activity. This measure indicates the movement of coins in and out of centralized exchanges. A higher number of coins leaving the exchanges typically suggests that buyers are moving their BTC into self-custody, which usually reduces immediate selling pressure.

On December 19, the outflows from Bitcoin exchanges were approximately 26,098 BTC, but by December 21, this number soared to 41,493 BTC—a remarkable 59% increase in just two days.

This disparity is noteworthy. While whale accumulation has been consistent but at a modest pace, the acceleration of exchange outflows suggests that both retail and mid-sized investors are stepping in, creating increased demand in the spot market.

Combined, these indicators reflect rising buying pressure, even though Bitcoin's price has not yet broken out.

Key Bitcoin Price Levels to Watch

The significance of the current buying pressure is closely tied to critical resistance levels for Bitcoin.

The most crucial resistance point is around $89,250, which has limited upward movements since mid-December. This barrier has coincided with multiple unsuccessful attempts to move higher. Until Bitcoin can decisively close above this level, the market is likely to remain within its range.

If buyers manage to surpass $89,250, Bitcoin could aim for a move toward $96,700, which is a strong resistance area. This level has previously caused price rejections and would serve as the next critical challenge.

Conversely, $87,590 remains an important short-term support level. A clean break below this would expose Bitcoin to lower levels, down to $83,550, with further risks towards $80,530 if selling pressure mounts.

In summary, Bitcoin is currently at a crucial juncture, caught between rising buying pressure and a persistent resistance wall. With whales incrementally adding to their positions and exchanges witnessing accelerated outflows, the price is nearing a pivotal moment. The outcome will depend on one crucial factor: Can the surge in demand finally overcome the $89,250 obstacle, or will the range persist into the new year?