Bitcoin spot demand increases as high as $72K may reveal the next move.
Bitcoin (BTC) rose above $72,000 on Tuesday as buyers returned to the BTC order book and derivatives data.
Bitcoin's recent trading history shows that holding the $70,000 level is the first bulls to recognize, but previous BTC price rallies have been dominated by short-term traders selling into bullish momentum. Will this time be different?
Demand for the Bitcoin space remains positive
Bitcoin held above $71,300 on Wednesday as spot market demand strengthened over the past few days. The order flow on major exchanges shows a clear shift towards investor accumulation.
The 30-day spot net volume delta, which tracks the net difference between market buys and sells, turned positive on both Binance and Coinbase after a steady selloff in February.
Binance's 30-day net volume moving average was $43.2 million, while Coinbase recorded $13.88 million. This marks a concerted change of behavior on key crypto exchanges.
The generated information adds weight to the activity. Binance Cumulative Volume Delta (CVD) rose to $5.6 billion on Wednesday, up from $3.3 billion in April, according to data from CryptoQuant. The CVD measures aggressive market orders, and the recent surge follows an increase in receiver buying volume following Bitcoin's fall below $65,000 on March 30.
The amount of current accumulated net leverage on Binance has reached its highest level since early February when CVD stood at around $74 million. This indicates more buyer guilt than the muted activity seen in the previous consolidation phase.
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$72,000 is Bitcoin's line in the sand.
Bitcoin's interaction with $72,000 continues its short-term positioning. The level has served as resistance since February 4, with attempts to recover on March 4 and March 16 failing. Both rallies were met with sharp selling from short holders, who sold 26,000 BTC and 31,000 BTC respectively.
The current behavior shows a different pattern. After BTC's rally to $72,000 on Tuesday, the data shows that short-term holding capital is close to 3,000 BTC. The reduced selling pressure indicates an urgency to exit positions at current levels compared to previous attempts.
Profitability metrics are also stabilizing. Bitcoin's net realized profit/loss seven-day moving average sits at -$109 million, recovering from a low of -$2 billion on February 7. The index is approaching positive bias for the first time since January 22, indicating a gradual reduction in losses.
Decreased selling pressure and increased profitability point to a market where buyers are gradually balancing available supply. For a bullish spread to occur, the trend should continue and buyers should defend the $70,000 to $72,000 zone over the next few days.
Related: Cango Sells 2,000 BTC, Bitcoin Price Drops by 19% in March
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