Bitcoin Technical Signal Flashes Bottom Warning – Will $102K Resistance Break?

As U.S. President Donald Trump implements new tariffs targeting Canada, Mexico, and China, Bitcoin prices experience a decline to approximately $91,500, reflecting concerns over a potential global trade conflict. Despite a swift recovery from an initial price drop, Bitcoin faces strong resistance at the $102,000 mark, sparking speculation regarding the continuity of its current upward trend.

Renowned crypto analyst Burak Kesmeci recently highlighted Bitcoin's Advanced NVT (network value to transaction) metric in a post on February 7.

This on-chain indicator assesses Bitcoin's market value relative to transaction volume, offering insight into overbought or oversold market conditions. According to Kesmeci, the Advanced NVT has pinpointed local bottoms on several occasions in the past year: on May 2, with a score of 30.78; August 5 (35.82); September 6 (35.81); and October 10 (38.21).

Each identified bottom was followed by a temporary accumulation phase, preceded by price recoveries. Notably, as Bitcoin recently fell to $91,000, the Advanced NVT metric registered 38.13, aligning with past local bottoms. This suggests the potential for a price rally. Despite this, historical data infers that Bitcoin may remain in a consolidation period before a significant rally. Following resistance at $102,000, Bitcoin is presently moving within a range of $95,000 to $100,000. Overcoming resistance levels at $102,000, and further at $105,000 and $106,000, is crucial for a price increase.

In related developments, blockchain analytics firm IntoTheBlock reports $267 million in net exchange outflows in the Bitcoin market, marking three consecutive weeks.

This persistent outflow is a bullish indicator, implying investors are withdrawing assets from exchanges, thereby reducing selling pressure. While the trend continues positively, current outflow volumes remain below those recorded in November 2024, indicating room for improved investor confidence.

At present, Bitcoin is trading at $96,720, marking a 0.84% decline over the past 24 hours. The asset faced a challenging trading week with an overall 6.48% loss, yet maintains a 2.90% gain for the month. With a market capitalization of $1.9 trillion, Bitcoin remains the foremost cryptocurrency and the eighth-largest asset globally.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.