As Bitcoin (BTC) faces the challenge of maintaining its price above the $65,000 support level, on-chain data indicates there might be a glimmer of hope for the crypto.
Particularly, data from crypto analysis platform CryptoQuant, shared by analyst Ali Martinez on June 15, shows that a section of investors are increasingly accumulating Bitcoin following the recent dip.
The data shows that the Taker Buy Sell Ratio on the HTX cryptocurrency exchange has surged to 545, signaling robust buy pressure. This spike in the metric is often seen as an indicator of bullish sentiment, suggesting a potential upward price movement for Bitcoin.
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Martinez provided a chart that tracks the Bitcoin price alongside the Taker Buy Sell Ratio over the past week. Bitcoin’s price has shown a general downtrend from approximately $70,000 to just over $66,000, with minor fluctuations but an overall downward direction.
On June 9, the Taker Buy Sell Ratio significantly spiked, indicating a sudden increase in buying pressure. Another substantial spike occurred on June 15, with the ratio reaching 545.857, coinciding with a Bitcoin price of $66,180.
Will Bitcoin rally?
Historically, spikes in the Taker Buy Sell Ratio often precede price increases, and the current surge suggests that investors are accumulating Bitcoin, possibly anticipating a price recovery or breakout.
Indeed, a Bitcoin rally could alleviate fears of a possible crypto downturn, considering that the maiden digital asset has been underperforming compared to other asset classes. Specifically, an earlier Finbold report noted that stocks and bonds are beating Bitcoin in the second quarter of 2024.
There remains general uncertainty regarding Bitcoin’s next trajectory, with the market possibly torn between whether bears or bulls will take charge. As reported by Finbold, analyst CryptoCon suggested that investors should watch out for the 20-week exponential moving average (EMA), currently at $61,603, as it will act as a key anchor for the next bullish movement.
Bitcoin price analysis
Bitcoin was trading at $66,200 by press time, correcting by almost 1% in the last 24 hours. On the weekly chart, Bitcoin was down nearly 5%.
Although the buying pressure suggests that Bitcoin might face an imminent breakout, technical analysis indicates that bearish sentiments dominate the crypto. A summary of the one-day gauges retrieved from TradingView aligns with the ‘sell’ sentiment at 12. Moving averages at 9 replicate a similar sentiment. On the other hand, oscillators recommend neutrality, gauging at 6.
At the moment, for Bitcoin to have any chance of breaking out, it needs to breach the immediate resistance at $67,000. However, losing the $65,000 support could spell more trouble for Bitcoin.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
