Bitcoin’s short-term indicators are signaling potential bullish opportunities. Despite the 30-day MVRV ratio remaining negative, an increase in mean coin age suggests widespread accumulation.
Although the $55k liquidation cluster remains untested and resistance at $63.3k persists, Santiment’s on-chain data reveals that key Bitcoin stakeholders have accumulated a record 16.17 million BTC.
Entering July, Bitcoin has shown a robust recovery, with its price surging by 4.5% since last Saturday, surpassing $63,000. Currently, Bitcoin has retested and successfully defended its support zone established since March 1st, maintaining price lows observed over the last three months.
The resistance at the mid-range level of $63.3k remains firm. While technical indicators suggest that a bullish reversal on longer timeframes is not imminent, shorter timeframes reveal potential for an upside, driven by recent bearish sentiment and an imbalanced futures market.
On-chain Bitcoin metrics indicate widespread accumulation. The 30-day MVRV ratio is negative, showing short-term holders at a loss. However, the mean coin age has steadily increased over the past six weeks, signaling a positive trend. This suggests that holders are accumulating, pointing to an undervalued asset and presenting a short-term buying opportunity that could spark a Bitcoin rally.
Despite this, the Network Value to Transactions Ratio (NVT) indicates that Bitcoin is overvalued relative to daily on-chain transaction volume, posing a challenge for bulls. However, this is less significant compared to the positive signals from the MVRV ratio and mean coin age. According to Crypto News Flash, BTC sentiment is at an 18-month low.
Courtesy: Santiment
Bitcoin liquidation clusters reveal that the $55k cluster remains untested as bulls have prevented prices from falling below the $60k psychological support. It’s important to note that not every high-liquidity zone needs testing. If prices continue to rise, the $73k zone will become a key area of interest for traders, according to Crypto News Flash.
The path forward for bulls is not straightforward. Julio Moreno, Head of Research at CryptoQuant, tweeted that Bitcoin miner capitulation might be imminent, suggesting prices may have reached a local bottom. Additionally, crypto analyst Axel Adler noted that recent Bitcoin sales were primarily absorbed by crypto exchanges rather than the broader market, per the CNF update.
Moreover, on-chain data provider Santiment revealed that Bitcoin’s major stakeholders maintain a long-term bullish outlook. Wallets holding over ten coins have now accumulated a record 16.17 million BTC, indicating strong confidence in Bitcoin’s future. Santiment suggests that an increase in buying power from Tether and USD Coin holders is crucial to ignite the next crypto bull run, potentially leading to a significant market surge.
Courtesy: Santiment
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