Bitcoin has seen multiple consecutive weeks of red closes. For the past two months, the most popular cryptocurrency has seen nine consecutive weeks with red closings. This had caused a bearish picture for bitcoin. It seems that the tide is turning as bitcoin ended its long streak. BTC reached its first weekly close for more than two years with a high of $30,000 Monday morning.
Bitcoin has brighter days ahead
Although bitcoin’s price has shown some improvement, this does not erase two months worth of bearish trend. It does not necessarily signal a bullish trend for digital assets, but it is the first in a long string of reds. However, it shows that investors’ sentiment has begun to improve. Although the buyers will still dominate the market in the coming week, it’s possible to see positive inflows.
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Bitcoin has not seen a positive weekly close since March. The sentiment was already worsening before March. This continues into the new week as the Fear & Greed Index is currently sitting at 13, putting it in extreme fear. BTC’s rise above $32,000 last week had worked to help ease the fear in the market but negative sentiment had returned once more with the crash below $29,000.
BTC settlements exceed $31,000| Source: BTCUSD on TradingView.com
BTC will continue to show shaky moves from now. To be considered as a bull trend, the digital asset must have a market capitalization of at least $35,000 But, the cryptocurrency is facing multiple resistance points.
What exchange inflows say
Bitcoin market inflows reflect the optimistic sentiment returning to the markets. Glassnode data shows that in the past day there has been $6.6 billion of Bitcoin moving to exchanges, while $7.9 trillion was moved out. The net result is negative $1.3 billion. This indicates that investors are more inclined to accumulate than sell offs.
🚨Weekly On-Chain Exchange🚨#Bitcoin $BTC
➡️Invoices of $6.6B
⬅️$7.9B
📉 Net flow: -$1.3B#Ethereum $ETH
➡️$3.3B
⬅️Outgoings: $3.2B
📈 Net flow: +$108.6M#Tether (ERC20) $USDT
➡️Invoice: $3.4B
⬅️Outgoings: $4.2B
📉 Net flow: -$781.3Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) June 6, 2022
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Bitcoin is still far from its peak and there are indicators that indicate that it will recover to the ATH value in years. However, bitcoin’s price is expected to remain stable against bears for the short term. The majority of BTC-investors are in profit so it’s unlikely the selling will cease anytime soon. It is getting close to exhaustion.
Featured Image from The Cryptonomist. Chart from TradingView.com
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