Bitcoin has been closing in the red consistently for several weeks now. This has been the case for the past two months, when the major cryptocurrency saw a red close for nine consecutive weeks. Unsurprisingly, this had tarnished a very bearish image for the digital asset. However, it looks like the tide is starting to turn as soon as Bitcoin ends its streak. A break above $30,000 in the early hours of Monday put BTC on its first weekly close in more than two months.
Better days for bitcoin?
While the price of bitcoin is correcting, it hasn’t exactly erased the bearish trend of more than two months. This first green in a long line in red does not automatically trigger a bull trend for the digital asset. However, this suggests that investor sentiment is starting to improve. There is no doubt that sellers will continue to dominate the market for the better part of next week, but from here the positive inflows are expected to pick up.
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Bitcoin hasn’t had a green weekly closing since the month of March. Even before that, the sentiment had changed for the worse. It continues into the new week as the Fear and Greed Index currently sits at 13, putting it in extreme fear. BTC’s rise above $32,000 last week helped ease fears in the market, but negative sentiment was once again back and the crash was below $29,000.
BTC settles above $31,000 | Source: BTCUSD on TradingView.com
What is expected from here is a volatile move for BTC. The digital asset needs to secure positions above $35,000 to consider another bull trend back. However, several important resistance points lie ahead for the cryptocurrency.
what is exchange inflow
Bitcoin exchange inflows reflect the positive sentiment that is returning to the market. Data from Glassnode shows that for the past day, $6.6 billion in BTC was exchanged, while $7.9 billion was transferred. This works out to a negative net inflow of $1.3 billion, indicating that more investors are moving towards accumulation rather than outright sell-off.
Weekly on-chain exchange flow#bitcoin $BTC
️ $6.6B in
️ $7.9B out
Net Flow: -$1.3B#ethereum $ETH
️ $3.3B in
️ $3.2B out
Net Flow: +$108.6M#tether (ERC20) $USDT
️ $3.4B in
️ $4.2B out
Net Flow: -$781.3Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) 6 June 2022
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Bitcoin is far from its all-time high and indicators point to a recovery of that ATH value which is years away. Nevertheless, in the near term, the price of bitcoin is poised to hold against the bears. Since most BTC investors are still in profit, it is not expected that the sell-off will end anytime soon. But it is close to an exhaustion point.
Featured image from The Cryptonomist, chart from TradingView.com
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