Bitcoin Price Targets $70K as Exchange Ratio Hints First Buy Signal of 2024

Bitcoin price dropped by 1.38% to $58,545 during Friday’s U.S. trading session, as selling pressure hindered a sustainable recovery above $60,000, extending the consolidation trend in the altcoin market. Although the current market behavior shows no clear signs of bottoming out, on-chain indicators suggest that major players are likely accumulating during this dip.

Bitcoin Price to Rebound as Onchain Metric Flashes Buy Signal

Despite the Bitcoin price consoldation, the average Exchange Inflow/Outflow ratio signals a potential rebound in the crypto market. A recent tweet by Crypto Quant’s author Axel Adler Jr highlights that this metric signals a rare strong buying pressure, marking only the sixth occurrence in the past decade.

Historically, such signals have preceded major price rallies, with the last occurrence leading to BTC’s meteoric rise to all-time highs. Axel also added that retail investors often don’t reach for such a signal and may enter after the Bitcoin price exceeds $70000.

https://twitter.com/AxelAdlerJr/status/1829425584927027654?ref_src=twsrc%5Etfw” rel=”nofollow

Another tweet from analyst Woominkyu accentuates a key relationship between BTC price and hash price, which reflects mining profitability. According to the added chart, a low hash price (highlighted in blue boxes) has coincided with Bitcoin reaching its price bottom. 

This correlation implies the recent drop in hash price indicates the pioneer cryptocurrency is near another price bottom, projecting a potential buy signal for investors.

https://twitter.com/Woo_Minkyu/status/1829360366238986519?ref_src=twsrc%5Etfw” rel=”nofollow

Moreover, the renowned analyst Ali Martinez highlights the large investors’ behaviors in the current market dip. Data from Santiment shows a 40,000 BTC drop in exchange supply within the last 48 hours, equivalent to approximately $2.40 billion.

These largest withdrawals from the exchange indicate that smart money traders are accumulating Bitcoin in anticipation of potential recovery.

https://twitter.com/ali_charts/status/1829457029930385569?ref_src=twsrc%5Etfw” rel=”nofollow

BTC Price Hints Temporary Consolidation Amid Flag Pattern

By press time, the BTC price traded at $59540, boosting a market cap of $1.174 trillion. The current consolidation with short-body candles with long-wick indicates a lack of initiation from market buyers or sellers.

However, the daily chart reveals a bullish contention pattern called a flag. The chart pattern drives a temporary sideways trend within two trendlines for prevailing bullish momentum to regain strength. 

If the pattern holds true, the Bitcoin price prediction hints at a potential 14% rise to challenge the overhead trendline at $68. A successful breakout will bolster buyers to drive a rally past $70000 and target $83000.

Conversely, a breakdown below the flag support trendline will indicate a deeper correction looming for the Bitcoin price.