3 compelling signs that Bitcoin bears have stopped selling

BTC’s price bounce to $ 40,000 is just one of the few signs that the bears might be exhausted. The price of Bitcoin (BTC) surged in the early hours of the New York session on May 26, surpassing the $ 40,000 level for the first time in five days as traders brushed aside concerns over a ban on Bitcoin. cryptocurrencies in China and the cryptocurrency tax proposal in the United States.

The benchmark cryptocurrency hit an intraday high of $ 40,855 before turning down due to profit-taking sentiment. Meanwhile, analysts like Cheds and Korous AK expect the BTC / USD pair to hit $ 42,000 in the near term, but advised caution on extended bullish positions unless the spot market confirms a clear bullish breakout.

Cheds particularly showed bullish conviction if Bitcoin recovers its 200-day simple moving average (200-day SMA), which is currently around $ 40,600. The wave has a history of serving as a solid price floor in the face of long-term downtrends. More support for a bullish outlook on Bitcoin came from the on-chain data. At least three blockchain-focused metrics showed the cryptocurrency bottoming out after falling to $ 30,000 on May 19.

Bitcoin deposits on exchanges decline

On-chain analytics platform Glassnode today revealed that the total number of cryptocurrency addresses sending bitcoin tokens to crypto exchanges decreased in an average time period of seven days. The metric, called “Number of addresses deposited with exchanges,” illustrates the number of unique addresses that appear as senders in a transaction that sends funds to platforms. Simply put, it shows a decrease in the number of new Bitcoin traders who might want to transfer BTC to exchanges to sell / trade for other assets. New traders / investors tend to react more emotionally to sharp movements in cryptocurrency prices. But with the Glassnode metric showing a drop in Bitcoin unique depositors to exchanges, it indicates a downtrend in potential selling pressure.

NVT reaches classic bullish reversal level

Meanwhile, the seven-day average production in the Bitcoin network value for the transaction signal has fallen to its 14-month low, data from Glassnode shows. Bitcoin price reacted bullish when the NVT signal touched 500 on the hourly chart, as the chart above shows. Based on fractal sentiment alone, the metric now suggests a strong bullish reversal in the Bitcoin market as it is trading 36% above its previous low of $ 30,000.

Uptrend accumulation directions

Another Glassnode metric shows that the latest Bitcoin price drop has done very little to shake up long-term bullish investor sentiment. The “Number of Accumulation Directions” hit an all-time high just as the BTC / USD pair hit $ 30,000 on May 19, bringing the total to over 545,000. Glassnode defines accrual addresses as those that have at least two incoming Bitcoin transactions and have never spent funds. The analysis service considers these addresses as long-term holders.

An increase in accumulation directions during the BTC price drop that destroyed billions in leveraged positions shows that bulls with a long-term setup absorbed the selling pressure. That marks another sign of bearish exhaustion as Bitcoin tries to invest $ 40,000 at a new support level.

Reference: es.cointelegraph.com

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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