Analysis: Bitcoin buying pressure is returning, breaking through $78,000 is necessary to reverse the downtrend

CryptoWorld News reports that on March 12, data from CryptoQuant showed that as demand for Bitcoin derivatives rebounds, the net order flow indicates buyers are entering the market. Net order flow measures the imbalance of active buying and selling in the derivatives market, and this indicator has remained positive since the outbreak of the US-Iran war. This positive trend aligns with Bitcoin’s recent rebound to $74,000, suggesting that demand in the derivatives market has returned. Coinbureau CEO Nic added, “This shows that buy orders are surpassing sell orders, and buyers are taking control of the market.” TradingView data shows that Bitcoin has been consolidating in the $62,000 to $72,000 range for over four weeks, with multiple unsuccessful attempts to break above $70,000. From a broader perspective, BTC price remains between the realized price (the average purchase cost of all circulating supply at $54,400) and the true market average (the cost basis of active trading coins at $78,000). Glassnode states, “Without broader macro headwinds, this range could support a relief rally from a bear market, with the upper limit constrained by the true market average.” Charts show that throughout most of 2023, BTC price has been between these two cost levels, with relief rallies often stalling near the true market average. Ultimately, in October 2023, the news of the approval of the US spot Bitcoin ETF led to a breakout. Crypto trader and analyst Titan said that if BTC breaks through the $78,000–$80,000 range, it could signal a change in the long-term trend.