3 reasons Bitcoin analysts believe BTC price recovery is overdue
The price of Bitcoin (BTC) has fallen 6.5% over the past seven days and is currently 10% below its March 14 high of $73,835.
Despite this performance, the technical setup, positive investor interest and onchain data have Bitcoin analysts believing that a trend shift to an exponential improvement may be underway.
Bitcoin price holds above key support areas
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin prices hovering between $58,000 and $72,000, shying away from new all-time highs in more than 10 weeks.
As noted by renowned analyst Rect Capital, the Bitcoin weekly chart is retesting the current price range when BTC reached its previous all-time high.
According to Rect Capital, this area is currently supporting BTC as the ongoing selling price has not shown the price below this range.
“Bitcoin successfully attempted to retrace the black mid-range as support (~$66,000) recently. Any negative volatility below the black is bonus territory.”
Sharing a three-week chart of BTC/USD, he made a similar observation for BTC/USD, which shows that the price is trading above the 0.5 line (MZ BTC Bottom-Indicator).
This indicator uses the Elliot Wave Oscillator Methodology applied with BTC Golden Bottom with Adaptive Moving Average and the resulting EVO Relative Strength Index to create an oscillator to determine the health status of the Bitcoin price.
According to Mustache, the price of BTC has retested only three times before – in 2012, 2017 and 2020. In those circumstances, previous all-time highs supported the price of Bitcoin, after which the coin hit a new record and fell on a parabolic rise. High.
In 2012, 2017 and 2020, this marked the beginning of a very exciting time in crypto.
In an earlier X post on June 12th, mustache commented on the same BBWP indicator setup, stating that BTC will reach a high after retesting the line.
“What we're talking about here is an indicator of volatility. Above the EMA 20-line, it has always been bullish so far.
High public interest buys Bitcoin's potential upside
Reacting to the market decline in the past few days, Bitcoin investors felt it was time to enter local dips and buy more BTC in the dips, according to market intelligence company Sentiment.
The analyst firm said Bitcoin's recent decline, which fell below $67,000 on June 13, resulted in the second largest “buying of BTC interest in the past two months.”
In a June 14 post on X's social media platform, Sentiment said:
“Buying interest in Bitcoin increases, selling interest remains dormant after entering $66.6k.”
This means that retail investors are showing signs of confidence as they believe that the recent price declines are “confirmed and buy in hopes of a quick recovery”.
Additional data from Alternative, a platform that analyzes “sentiments and sentiments” around Bitcoin, shows that the Crypto Fear & Greed Index is in the “Greed” zone at 74, up from 70 in June and 64 last month.
Overall, this is a positive sign, as positive social sentiment reflects optimism among a diverse set of investors.
Related: Can Bitcoin Whales Protect BTC Price From New $48K Lower Target?
Decreasing Bitcoin balance on exchanges
According to data from onchain metrics analytics firm CryptoQuant, BTC transaction volume hit a five-year low of 2.822 million BTC after a 3.6% decline over the past 30 days.
Decreasing BTC balances on exchanges can simply mean investors withdraw their tokens to self-storage wallets, indicating no interest in selling in anticipation of future price increases.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
