Is Bitcoin poised for a rally? Examining critical indicators for BTC’s upcoming movement

  • Recent reports show that Bitcoin faced a slight decrease in price last week.
  • Analysts indicate that BTC may be approaching a potential market bottom.

The Bitcoin [BTC] community witnessed a dip in its pricing, with bears maintaining control over the market. Despite the decline, the future outlook for BTC seems uncertain.

Let’s delve deeper into the current state of BTC to anticipate what the upcoming week holds for us.

Hope for Bitcoin bears to slow down

Recent data from CoinMarketCap revealed a more than 2% decrease in Bitcoin’s price over the last seven days, despite a brief bullish trend after surpassing $70k on May 24th.

As of now, Bitcoin is trading at $67,674.15 with a market capitalization exceeding $1.33 trillion.

Looking ahead, Milkybull, a noted cryptocurrency analyst, shared an intriguing observation in a recent tweet, hinting at a potential change in BTC’s trend.

The tweet suggests a positive outlook in the short term, highlighting a buildup for a forthcoming move.

Analysis by AMBCrypto on CryptoQuant’s data displayed BTC’s binary CDD as positive, indicating a decrease in movements by long-term holders. Despite this, other metrics leaned towards a bearish trend.

For instance, BTC saw increased net deposits on exchanges compared to the previous week, and the aSORP signal was red, implying more selling by investors at a profit, a potential sign of a market peak in a bull market.

Bitcoin's aSORP was red

Source: CryptoQuant

Potential for a Bull Market Resurgence?

In addition, Bitcoin’s fear and greed index currently stands at 72, indicating a phase of market “greed,” often preceding a correction in prices.

Conversely, Glassnode’s information revealed a potential uptick in prices.

BTC’s Pi Cycle Top indicator highlighted that the coin’s price was nearing the 111-day moving average, suggesting a possible rebound after touching this support level, which signals a market bottom.

Source: Glassnode

Check out the Bitcoin (BTC) Price Prediction for 2024-25

The likelihood of BTC touching its support level is high, as evidenced by the sharp decline in the coin’s Money Flow Index (MFI) and Chaikin Money Flow (CMF).

These signals indicate a potential further drop in BTC’s price before a possible resurgence in the near future.

Source: TradingView

Next: Dogecoin price prediction: Is a June rally likely?

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