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.
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.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: hamara/123RF // Image Effects by Colorcinch
The 5 Best Crypto Wallets Worth Using in 2024 — Find Out Why Selecting a…
With a Total Value Locked (TVL) of $50.72B, Ethereum is the world's largest blockchain, with…
The meme coin market has recently been surging once again; tokens such as Pepe and…
The FLOKI price has recorded over 300% yearly ROI, dominating crypto gains in the meme…
Crypto investors are constantly searching for promising opportunities to diversify their portfolios and Algorand, Aptos,…
Crypto investors are constantly searching for promising opportunities to diversify their portfolios and Algorand, Aptos,…