Four Reasons Why Bitcoin (BTC) Bull Run Is Coming
TL;DR
- Bitcoin’s price has fallen 15% since mid-March, but signs suggest the bull run may not be over.
- Decreasing selling pressure and investor sentiment point to a potential buying opportunity for the asset.
Bitcoin’s price has fallen 15% since its all-time high of $73,500 in mid-March. However, some important Indicators point to the possibility of a new bull run very soon.
One of these metrics is the Fear and Greed Index. Current sentiment of investors is based on various factors. It ranges from 0 to 100, with a rate above 50 indicating a state of “greed”.
The index has been entry For the first time in months, “fear” and neutral territory. But this can happen be interpreted It is viewed by investors and traders as a buying opportunity. After all, one of Warren Buffett’s investment advice is that one should be greedy when others are fearful and vice versa.
Giving Up on Trade-Offs
Bitcoin exchange net flow is the next factor acceptableThere were outbursts last month exceeded (most days) logins indicate a shift away from centralized platforms towards personal surveillance methods. This It is thought that It is showing an upward trend as it reduces immediate selling pressure.
BTC Exchange Netflow, Source: CryptoQuant
It is worth noting this change net flow It was predominantly red in May and then BTC surged above the $70k level in early June.
RSI
Bitcoin’s Relative Strength Index (RSI) is also an important element. The technical analysis tool measures the speed and change of price movements to determine whether the asset is overbought or oversold.
It ranges from 0 to 100, with a ratio above 70 indicating that a correction may be imminent. The RSI is currently to arrange He was 58 and had only crossed the 70 mark twice in the last month.
MVRV
Last but not least, we will: Touch on it Bitcoin’s Market Value to Realized Value (MVRV) ratio. It is an assessment tool valuation of the primary cryptocurrency and potential market trends.
A score above 3.5 indicates that the price is near a top, while a result below 1 warns of a bottom. MVRV ratio immersed under 2 He gave a buy signal for the digital asset at the beginning of July.
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