As a seasoned crypto investor with a decade-long journey through the digital asset landscape, I can confidently say that the current Bitcoin price consolidation around $60,000 is not a cause for alarm but an opportunity to accumulate. The market’s uncertainty, driven by recession fears and outflows from BTC ETFs, often serves as a breeding ground for the smart money to amass holdings in preparation for a potential rebound.
Over the last three weeks, Bitcoin‘s price hovering around $60000 has sparked unease among cryptocurrency enthusiasts due to uncertainty. This prolonged consolidation could be tied to rising concerns about recession, withdrawals from Bitcoin Exchange-Traded Funds (ETFs), and an absence of a definitive low point. Yet, such apprehension often leads to the elimination of short-term speculative traders, while large investors gather resources for a possible recovery.
Bitcoin Price to Rebound as Onchain Metric Flashes Buy Signal
Regardless of Bitcoin’s current price stability, the typical Exchange Inflow/Outflow ratio suggests an impending surge in the cryptocurrency market. A recent tweet from Axel Adler Jr, author at Crypto Quant, indicates that this indicator points to a significant buying pressure, occurring infrequently over the past decade, just six times.
Historically, these signals have been indicators of significant price increases in Bitcoin, with the most recent instance contributing to its record-breaking surge to peak prices. Axel further stated that many retail investors tend to overlook this signal and instead invest once the Bitcoin price surpasses $70,000.
As an analyst, I’ve observed that when the average Exchange Inflow/Outflow ratio consistently strengthens, it suggests a robust wave of buying activity is taking place. Remarkably, this pattern has occurred on six separate occasions over the past decade.
Retail investors, of course, won’t react, they will enter when the price is above $70K.
— Axel Adler Jr (@AxelAdlerJr) August 30, 2024
Analyst Woominkyu’s latest tweet emphasizes the significant connection between Bitcoin (BTC) price and mining cost (hash rate), indicating mining profitability levels. As shown on the provided graph, periods of low mining costs (depicted in blue boxes) have often coincided with Bitcoin reaching its lowest prices.
As a crypto investor, I’ve noticed that the recent decline in hash price seems to suggest that the pioneering cryptocurrency might be approaching another price floor. This could potentially serve as a buy signal for us investors, indicating an opportune moment to consider investing.
Lowest Bitcoin Hash Price: A Potential Buy Opportunity
It shows where Bitcoin’s Hash Price dropped to its lowest, often aligning with Bitcoin price bottoms.
Historically, these dips have served as potential buying moments. This could imply that the current low Hash Price may also signal a similar opportunity.
— 우민규 (Woominkyu) (@Woo_Minkyu) August 30, 2024
Furthermore, well-known analyst Ali Martinez underscores the actions of significant investors during the present market downturn. As per data from Santiment, there has been a decrease of 40,000 BTC in exchange inventory within the past 48 hours, which translates to roughly $2.40 billion.
The biggest withdrawals from the exchange suggest that experienced Bitcoin traders, often referred to as ‘smart money’, are stockpiling Bitcoin in preparation for a possible price surge or recovery.
It appears that significant investors have taken advantage of the #Bitcoin price drop! Data from @santimentfeed shows a decrease of approximately 40,000 BTC from exchange holdings over the last 48 hours, equating to around $2.40 billion. This coincides with a significant increase in outflows from exchanges!
— Ali (@ali_charts) August 30, 2024
BTC Price Hints Temporary Consolidation Amid Flag Pattern
As of the deadline for this report, Bitcoin’s price stood at approximately $59,540, giving it a total market capitalization of around $1.174 trillion. The recent trend of short candles with extended wicks suggests that there is currently a hesitation among both buyers and sellers in the market to make significant moves.
On the day-to-day graph, we see a bullish tendency known as a flag formation. This pattern induces a short-term flat direction due to the presence of two lines that guide the resurgence of the existing bullish power.
As a crypto investor, if the current pattern continues, it seems that Bitcoin’s predicted price increase could reach approximately 14%, potentially pushing against the resistance trendline around $68. If this breakout is successful, the bullish momentum might propel the price beyond $70,000 and aim for a target of roughly $83,000.
In other words, if the Bitcoin price falls below its trendline support (which represents the resistance turned into support after a downward movement), it may suggest a more significant decrease in price is approaching.
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2024-08-30 15:46