- After a monthly decline of 20%, the price of BTC has risen 2% in the past 24 hours
- Most statistics suggested that BTC would remain bullish in the short term
Bitcoins [BTC] The price has been dropping in the charts for several weeks now. However, July 6 was an exception, where the crypto managed to stay green.
However, the insignificant recovery within 24 hours was not comparable to cryptos that recorded double-digit percentage gains in the last 24 hours. That said, the world’s largest cryptocurrency could soon be turning a corner.
Bitcoin is turning green
The past month has been a bit of a bloodbath for the king of cryptos as the price fell by almost 20%. A similar downward trend was also visible last week. While the past 24 hours have brought better news for Bitcoin holders, the crypto is still far from its former highs, with BTC trading just under $57,000 at the time of writing.
AMBCrypto’s look at CryptoQuant’s facts revealed that BTC’s foreign exchange reserves rose last month, meaning investors sold their holdings. Furthermore, BTC’s accumulation trend score remained somewhere between 0.16 and 0.11. Normally, the closer the benchmark is to 1, the greater the buying pressure.
Here it is worth pointing out that the accumulation trend score is an indicator that reflects the relative size of entities actively accumulating coins on-chain, in terms of their BTC holdings.
Source: Glassnode
Will BTC recover quickly?
While that was happening, Captain Faibik, a popular crypto analyst, shared a tweet revealing a possible reason behind BTC’s fall on the charts.
According to the analyst’s findings, BTC’s price is consolidating within a broader and descending wedge pattern. The tweet also mentioned that Bitcoin bulls need to clear the $61k resistance area to regain bullish momentum.
Source:
Additionally, AMBCrypto’s analysis of BTC’s Pi Cycle Top indicator highlighted that the crypto has been resting below its possible market bottom for quite some time.
According to the same information, the possible bottom and top of the market for BTC were $65k and $93k respectively. Plus BTCs fear and greed index showed it had a value of 23, meaning the market was in a ‘fear phase’. When that happens, there is a good chance of a price increase.
Source: Glassnode
Read Bitcoins [BTC] Price prediction 2024-25
Apart from this, things were also looking quite optimistic in the derivatives market.
AMBCrypto’s analysis of Coinglass data showed that BTC’s long/short ratio also increased. An increase in this measure means that there are more long positions in the market, compared to short positions.
In this case, the long/short ratio suggested that market sentiment around BTC has been mostly bullish over the past 24 hours.
Source: Coinglass