- The latest data shows that Bitcoin’s price momentum has shifted from negative to positive.
- Statistics and market indicators looked bearish on the coin.
After crossing the $69,000 mark, Bitcoin [BTC] has fallen below that level again. While this may seem worrying at first, the latest data revealed that now may be the right time to accumulate BTC.
Let’s take a closer look at what’s going on with the king of cryptos.
Bitcoin’s dilemma
BTC gained bullish momentum when it surpassed $69,000 on July 27. This gave investors hope that BTC would touch $70,000 again.
However, that didn’t happen as the bears took control and pushed the price of the coin down in the following hours. According to CoinMarketCapAt the time of writing, BTC was trading at $67,481.86 with a market cap of over $1.33 trillion.
In the meantime, Ali, a popular crypto analyst, posted a tweet revealing an interesting development. According to the tweetBTC’s Hash Ribbon signals the end of Bitcoin miners’ capitulation, indicating that BTC’s price momentum has shifted from negative to positive.
For starters, the Bitcoin hash ribbon shows the hash rate and price recovery following miner capitulations, which have historically produced powerful long-term buy signals.
Source:
Is purchasing pressure increasing?
Since the aforementioned indicator suggested there was a buying opportunity, AMBCrypto checked BTC’s statistics to see if investors were actively buying the coin.
Our analysis of Santiment’s data showed that BTC supply on exchanges increased sharply, while off-exchange supply decreased. This clearly meant that selling pressure increased.
The fact that investors were selling BTC was further evidenced by the spike in currency outflows.
Source: Santiment
However, unlike retail investors, miners considered holding their BTC. Our look at CryptoQuant’s facts revealed that BTC’s Miners’ Position Index (MPI) was green, meaning miners sold fewer assets compared to the annual average.
It was interesting to note that while miners were HODLing, their income dropped. This could cause a trend reversal in the coming days and force miners to sell BTC.
Source: Glassnode
AMBCrypto then planned to check Bitcoin’s daily chart to find out what to expect from the coin. According to our analysis, BTC’s Relative Strength Index (RSI) registered a decline. The Money Flow Index (MFI) also followed a similar trend.
Read Bitcoins [BTC] Price prediction 2024-25
Moreover, the technical indicator MACD showed the possibility of a bearish crossover soon, which indicated a price correction.
Nevertheless, the Chaikin Money Flow (CMF) indicated that there were chances of a price increase as the indicator moved north.
Source: TradingView