Renowned market analysts are using various market indicators to support their claims of a significant price recovery for Bitcoin following a period of consistent decline. Bitcoin has experienced an 11% drop in the latest market downturn, falling from its high of $71,907 earlier this month to a low of $64,066 two days ago. However, prominent altcoins have slumped at a rate more than twice that of Bitcoin.
Currently stabilizing around the $64,000 range, market observers believe that Bitcoin has reached its bottom for this dip and is poised for a major rebound in the next phase.
Michaël van de Poppe, a widely followed Bitcoin commentator, expressed confidence in a recent post that Bitcoin has likely bottomed around $64,000 and is now gaining upward momentum. Van de Poppe also noted that altcoins are displaying increased strength as Bitcoin’s dominance declines, indicating an imminent market reversal.
Another analyst, Bitcoinsensus, argued that Bitcoin’s chart looks very bullish from an Elliott Wave perspective. The market is currently in wave five on multiple time frames, which is the final phase of an upward impulse wave.
Additionally, Bitcoinsensus pointed out that Bitcoin’s illiquid supply has increased since May, suggesting that investors are holding onto their assets rather than trading them.
The resilience observed in the Bitcoin derivatives markets further supports the case for a BTC price recovery. Market watcher Ali Martinez recently highlighted that 70.27% of all Binance accounts with an open Bitcoin position are going long, with this ratio even slightly increasing in the latest figures.
However, it is important to note that there is still bearish momentum present. Analysts have identified Bitcoin miner capitulation as one of the factors behind the recent market dip. Early Bitcoin miners have made significant profits by selling BTC within the $62K to $70K price range, contributing to the selling pressure in the market.
While this wave of miner selloff is expected to subside soon, there is another potential source of selling pressure that could impact the anticipated Bitcoin rebound. Bitcoin selling pressure has been observed on the Coinbase exchange, coinciding with reports of the German government sending BTC to exchanges over the past two days, with over $3 billion worth of Bitcoin still to be sold.
It is important to note that this content is informational and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.