Key Points
- Bitcoin’s price momentum has shifted from negative to positive despite recent price drop.
- Market indicators suggest now might be a good time to accumulate Bitcoin.
After reaching over $69k, Bitcoin (BTC) has once again slipped below this level. However, recent data suggests this could be an opportune time to acquire more BTC.
The Bitcoin Situation
Bitcoin gathered bullish momentum as it surpassed $69k on July 27, sparking hope among investors that it could reach $70k again. But the bears took over, causing a price drop in the following hours. Currently, BTC is trading at $67,481.86 with a market capitalization exceeding $1.33 trillion.
Crypto analyst Ali posted a tweet revealing that BTC’s Hash Ribbon signals the end of Bitcoin miner capitulation, indicating a shift in BTC price momentum from negative to positive. The Bitcoin hash ribbon represents the hash rate and price recovery following miner capitulations, typically producing powerful long-term buy signals.
Is Buying Pressure Increasing?
Given the above-mentioned indicator’s suggestion of a buying opportunity, it was necessary to check whether investors were actively purchasing the coin. Analysis of Santiment’s data revealed an increase in BTC’s supply on exchanges and a drop in its supply outside of exchanges, indicating increased selling pressure. This was further confirmed by a spike in its exchange outflow.
Interestingly, miners were holding onto their BTC despite a drop in their revenue. This could potentially lead to a trend reversal and force miners to sell BTC in the future. Analysis of BTC’s daily chart showed a downtick in the Relative Strength Index (RSI) and the Money Flow Index (MFI). The technical indicator MACD also hinted at a possible bearish crossover, suggesting an upcoming price correction. However, the Chaikin Money Flow (CMF) indicated potential for a price increase as the indicator moved northwards.
