Bitcoin investors are hopeful for the cryptocurrency's price to reach $70,000, underscored by significant unrealized profits and declining exchange flows.

Bitcoin’s Current Trading Status

If Bitcoin holders begin to take profits, the sell pressure may replicate the scenario from late July when the price severely dropped within a few days. At the time of reporting, Bitcoin was trading at $68,350, less than 2.4% away from $70,000. The cryptocurrency is approaching the next resistance range between $69,400 and $71,500.

Bitcoin Exchange Flows

Bitcoin exchange flows could offer insights into the recent bullish wave. The latest increase in both inflows and outflows occurred between 13 and 16 October. However, exchange flows have since declined to their lowest levels this year. In the last 24 hours, 3,760 BTC moved out of exchanges, and approximately 3,940 BTC moved in, indicating slightly higher inflows than outflows.

Impact on the Crypto Market

Exchange flow fluctuations suggest a possible volatility resurgence for Bitcoin. While the direction—bullish or bearish—remains uncertain, address flows may offer clues. The number of active sending addresses has dropped from 860,161 on 15 October to 478,148 by 18 October. Conversely, receiving addresses rose from 379,545 to 625,308 in the same timeframe. This suggests declining sell pressure despite recent price increases.

The data reveals that addresses buying Bitcoin outnumber those selling it, highlighting declining sell pressure and potential for price increase, though a sudden sell-off remains possible.