3 major data reveal signals of Bitcoin's bottom
In recent days, the Bitcoin ($BTC) market has been oscillating between $105,000 and $110,000, with the market seemingly in a stalemate. However, while short-term volatility remains, some analysts believe that a bottom for Bitcoin may have already formed, with data showing limited room for a significant drop.
According to external media (Cointelegraph), three key data indicators suggest that the Bitcoin market may have bottomed, signaling a new wave of price increase:
The outflow/inflow ratio indicates strong demand
The outflow/inflow ratio of Bitcoin has dropped to 0.9. This is a level not seen since the end of the bear market in 2022, and historically, this data often signals strong demand.
This ratio measures the balance of cryptocurrency flowing in and out of exchanges; if it is below 1, it indicates that investors are moving assets off exchanges, which usually reflects accumulation behavior rather than selling.
Source: Cointelegraph The outflow/inflow ratio of Bitcoin has dropped to 0.9
Bearish pressure struggles to drive prices down
Despite aggressive bearish pressure in the Binance derivatives market, Bitcoin prices remain within a narrow range of $100,000 to $110,000.
The cumulative volume delta (CVD) indicator shows persistent bearish pressure, but prices have failed to drop further, suggesting that selling pressure is being absorbed by the market, indicating potential accumulation behavior.
Institutional funds are entering the market in large amounts
According to cryptocurrency analyst Maartunn, more than 19,400 Bitcoins have been transferred to institutional wallets, which have not moved in the past three to seven years.
Such large transfers are usually not impulsive actions but rather strategic layouts, indicating that large entities may be entering the market while prices remain stable.
(Cointelegraph) believes that the three pieces of data mentioned above may imply that Bitcoin has formed a phase bottom around $100,000.
Can Bitcoin break through this week? The candlestick chart gives mixed signals
Can Bitcoin break through the key resistance of $109,000 before July 12? According to (Decrypt), from a technical analysis perspective, the short-term candlestick charts (4-hour and 1-hour) show mixed signals.
(Decrypt) points out that from the 4-hour candlestick chart, Bitcoin is currently following a triangular convergence pattern, indicating that prices are consolidating, which suggests imminent volatility.
However, the target date has passed the convergence point of this triangular pattern, indicating that Bitcoin needs to break the consolidation before then to enter a bullish confirmation mode. Symmetrical triangles are generally seen as bullish signals, but timing the breakout is key.
Moreover, although Bitcoin maintains a healthy upward trend structure on the 4-hour candlestick chart, with the 50-day exponential moving average (EMA) above the 200-day EMA, momentum indicators are showing different signals.
The Squeeze momentum indicator is flashing bullish signals on both the four-hour and one-hour charts, showing that market momentum is recovering.
However, the average directional index (ADX) on the 4-hour and 1-hour candlestick charts is 13 and 17, respectively, far below the threshold of 25 that usually indicates a strong trend market. This suggests that while the price structure appears healthy, the market lacks the conviction and directional strength needed for a decisive move.
(Decrypt) believes that from a purely technical analysis perspective, the likelihood of Bitcoin closing above $109,000 before July 12 is moderately low, closer to a 'coin toss' outcome, with a slight bearish inclination.
In addition to technical charts and on-chain data, investors should closely monitor fundamental and news information that may affect market sentiment, such as developments in trade tariffs, trends in the US dollar index, and the shift of funds from high-risk assets to safe-haven assets, while carefully assessing risks.
This content is generated by Crypto Agent summarizing information from various sources and reviewed by (Crypto City). It is still in the training phase and may contain logical biases or information errors. The content is for reference only and should not be considered investment advice.
'Is Bitcoin's turbulence about to end? 3 major data show that a significant drop is unlikely for now. Will it reach a new high this week?' This article was first published on 'Crypto City'
