Bitcoin Sentiment Shifts As Key Bullish Indicators Emerge Amidst Market Fear

After Bitcoin’s retracement to $55.4K, a very bullish signal is becoming evident. Traders active in the past year have averaged returns of just +1.8%, the lowest level since BTC surged past $20K in March 2023.

This low average return indicates potential for a significant upward move.

The network currently has 54.09 million non-empty Bitcoin wallets, a decrease of 566,000 since June 15th. This reduction suggests that impatient investors are exiting, potentially marking a FUD-driven bottom similar to January’s market behavior.

Sentiment analysis on social platforms like X, Reddit, Telegram, 4Chan, and BitcoinTalk shows the most bearish outlook in a year. Historically, such high levels of fear often precede a rebound, catching the majority off guard.

In the short term, Bitcoin is trading within a parallel channel. With BTC near the channel’s lower boundary, the TD Sequential indicator has flashed a buy signal, suggesting a potential rebound to around $58,300. According to analyst Ali Martinez, if Bitcoin hits $58,400, $16.81 million worth of positions on Binance will be liquidated. Bitcoin is currently trading at $57.4K.

Yesterday, the German government accumulated 3,673 BTC ($207 million), reversing its recent outflows. After moving out 16,039 BTC (~$1 billion) last night, causing Bitcoin’s price to drop, the government’s quick reaccumulation suggests a strategic move.

Bitcoin ETFs Records Massive Inflows 

Meanwhile, Bitcoin ETFs saw significant inflows. On July 8, 2024, US Bitcoin ETFs recorded a net inflow of $295 million, the highest in 21 trading days, despite the $1 billion outflow from the German government. Notably, no US Bitcoin ETF, including Grayscale, experienced outflows yesterday. BlackRock’s IBIT ETF saw a single-day inflow of $187 million, the highest in 20 trading days.

Overall, despite current market fear, several indicators point to a potential bullish reversal for Bitcoin.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stocks.

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