Key Points
- Bitcoin is showing a bearish bias due to continuous selling, despite strong accumulation over the past month.
- Long-term metrics indicate that Bitcoin’s price bottom is likely close or already in place.
Despite strong accumulation over the past month, Bitcoin (BTC) is currently showing a bearish bias due to relentless selling.
Bitcoin’s Struggle Despite Demand
Nearly three months after its halving event, the expected bull run for Bitcoin hasn’t materialized. This has led to questions about why the cryptocurrency is struggling, even with demand from ETFs and cooling inflation.
A closer look at long-term metrics suggests that predictions of Bitcoin’s price bottom being close, or already in, are likely accurate.
Price Action Indicators
The 4-hour price chart indicates a range formation between $53.5k and $58.9k. The supply zone at $59.2k-$61k has been tested twice in recent days, but without success.
The OBV shows that buying pressure is not strong, and the RSI was pushed below neutral 50 after the price rejection at the range highs. This suggests that traders should prepare for another price dip toward $55k.
The liquidation heatmap for the past month shows that the $59.5k liquidity pocket was tested on July 11th, and prices immediately retraced. This suggests that the liquidity cluster at $52.1k is the next target.
Opportunity for Traders
The mean coin age has been trending higher since May, indicating strong network-wide accumulation during the recent price dip. The 30-day MVRV is negative, showing short-term holders at a loss. Together, these factors present a strong buy signal.
The dormant circulation spiked dramatically on July 5th as Bitcoin prices dropped, but has been quiet since then.
In conclusion, the Bitcoin predictions of more losses hold weight due to the liquidity at $52.1k. The $46k region might also be targeted if sentiment weakens further. As things stand, investors can look to buy the dip.
Please note that the information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
