Key Points
- Bitcoin’s price fell by over 2% last week, with indicators suggesting a market bottom is near.
- Despite the decline, some data suggest that Bitcoin may be gathering momentum for a future move.
Bitcoin [BTC] experienced a price decline last week, with the bears maintaining the upper hand. Nonetheless, the latest data suggests that BTC may not face many hurdles moving forward.
Bitcoin’s Market Movement
According to CoinMarketCap, BTC’s price fell by over 2% in the past week, turning bullish only a few days after reclaiming the $70k mark on May 24th. Currently, Bitcoin is trading at $67,674.15 with a market capitalization exceeding $1.33 trillion.
However, the trend may change in the upcoming days. A tweet from popular crypto analyst Milkybull highlighted an interesting development, suggesting that nothing appears bearish in the short term. Instead, it appears that BTC is gathering momentum for its next move.
Indicators Point to Potential Bull Rally
BTC’s binary CDD was green according to CryptoQuant’s data, indicating that long-term holders’ movements in the past week were below average. However, other metrics appeared bearish. For instance, BTC’s net deposit on exchanges exceeded the seven-day average, and its aSORP was red, hinting that more investors are selling at a profit.
Despite these bearish signs, BTC’s fear and greed index stood at 72, indicating a “greed” phase in the market. This reading often precedes a price correction. On the other hand, Glassnode’s data suggested that BTC’s price was nearing the 111-day moving average (MA), a support level that often signals a market bottom.
The likelihood of BTC touching this support level seems high, as the coin’s Money Flow Index (MFI) and Chaikin Money Flow (CMF) both show sharp declines. These indicators suggest that BTC might experience a further drop before making a comeback in the coming days.
