Key Points
- Bitcoin’s price has seen a slight recovery after a 20% monthly fall.
- Metrics suggest that Bitcoin might soon turn a corner and remain bullish in the short-term.
Bitcoin’s [BTC] price has been on a downward trend for several weeks, but 6 July marked a day of recovery for the cryptocurrency.
Despite this, the insignificant 24-hour recovery was not comparable with other cryptocurrencies that registered double-digit percentage hikes over the same period.
Bitcoin Turns Green
The previous month was a tough one for Bitcoin as its price declined by nearly 20%.
Even though the last 24 hours have brought better news for Bitcoin holders, the crypto is still far from hitting its former highs, with BTC trading just under $57k.
Data from CryptoQuant showed that BTC’s exchange reserves rose last month, indicating that investors were selling their holdings.
The Accumulation Trend Score, an indicator that reflects the relative size of entities that are actively accumulating coins on-chain, remained somewhere in the range of 0.16–0.11.
Will BTC Recover Anytime Soon?
Crypto analyst Captain Faibik shared a tweet revealing a possible reason behind BTC’s fall on the charts.
According to the analyst’s findings, BTC’s price has been consolidating inside a widening, falling wedge pattern.
Bitcoin bulls need to clear the $61k resistance area to regain bullish momentum.
BTC’s Pi Cycle Top indicator highlighted that the crypto has been resting under its possible market bottom for quite some time now.
The possible market bottom and tops for BTC were $65k and $93k, respectively.
Additionally, BTC’s fear and greed index showed that it had a value of 23, meaning that the market was in a “fear” phase.
Whenever this happens, the chance of a price hike is high.
On the derivatives market front, it looked pretty optimistic.
Coinglass’ data identified that BTC’s long/short ratio increased too. A hike in this metric means that there are more long positions in the market, compared to short positions.
The long/short ratio suggested that the market sentiment around BTC has been mostly bullish over the last 24 hours.
