Bitcoin Investors Buying the Dip as Imminent Breakout Surges
As Bitcoin (
BTC
) struggles to stay above the $65,000
support
level, on-chain data suggests that there is a glimmer of hope for the
cryptocurrency
.
Data from
CryptoQuant
, a
crypto
analysis platform, revealed by analyst Ali Martinez on June 15, indicates that a portion of
investors
are increasing their holdings of Bitcoin after the recent dip.
The Taker Buy Sell Ratio on the HTX
cryptocurrency exchange
has surged to 545, signaling strong buying pressure. This increase in the metric is often viewed as a sign of
bullish
sentiment, hinting at a potential upward movement in Bitcoin’s price.
Martinez shared a chart displaying the Bitcoin price alongside the Taker Buy Sell Ratio over the past week. The price of Bitcoin has been on a downward trend, dropping from around $70,000 to just over $66,000, with minor fluctuations but an overall decline.
On June 9, there was a significant spike in the Taker Buy Sell Ratio, indicating a sudden rise in buying pressure. Another notable spike occurred on June 15, with the ratio reaching 545.857, coinciding with a Bitcoin price of $66,180.
Will Bitcoin experience a rally?
Historically, spikes in the Taker Buy Sell Ratio have often preceded price increases, and the current surge suggests that investors are accumulating Bitcoin, possibly in anticipation of a price recovery or breakout.
A potential Bitcoin rally could ease concerns of a potential downturn in the
crypto
market, as Bitcoin has been underperforming compared to other asset classes. A recent Finbold
report
highlighted that Bitcoin has been outperformed by
stocks
and
bonds
in the second quarter of 2024.
The future trajectory of Bitcoin remains uncertain, with the market divided on whether
bears
or bulls will dominate. Analysts at Finbold suggested monitoring the 20-week exponential
moving average
(EMA), which currently stands at $61,603, as it could play a crucial role in determining the next bullish movement.
By press time, Bitcoin was trading at $66,200, experiencing a correction of nearly 1% in the last 24 hours. On the weekly chart, Bitcoin was down by almost 5%.
While the buying pressure indicates a potential breakout for Bitcoin, technical analysis suggests a prevailing bearish sentiment in the
crypto
market. One-day indicators from
TradingView
show a ‘sell’ sentiment at 12, with moving averages at 9 reflecting a similar outlook. However, oscillators recommend neutrality, scoring at 6.
For Bitcoin to break out, it would need to surpass the immediate
resistance
at $67,000. Conversely, losing the $65,000 support level could lead to further challenges for Bitcoin.
Disclaimer:
The information provided on this website should not be considered as investment advice. Investing involves risks, and your capital is at risk when investing.
