Key Points:
Bitcoin's price has risen 17% since dipping below $60,000, with on-chain data indicating that demand is recovering.
A breakout above the BTC price resistance around $78,000 is necessary to end the downtrend.
Bitcoin Buyers Are Returning
According to CryptoQuant, the number of net Bitcoin recipients suggests that buyers are stepping in as demand for BTC derivatives returns.
“This indicates that the buying volume from recipients exceeds the selling volume,” Nic stated, adding:
The Bull Score Index, which uses a combination of fundamental and technical indicators to measure the overall market health of Bitcoin, further reinforces this view.
This index has risen from 10 on March 6 to 30, marking the highest level since late October 2023.
BTC Price Must Break Above $78,000 to End Downtrend
Traders and analysts, Titan of Crypto, indicate that a breakout above $78,000 to $80,000 could signal a change in the long-term trend.
Meanwhile, Glassnode states that failing to maintain above $70,000 “will skew mid-term returns unfavorably,” with the actual price of $54,000 being a key support level to watch.