Bitcoin's Price Could Start Moving Up Soon, Technical Indicators Suggest

The price of Bitcoin has been trading between the $40,000 and $30,00 marks over the last few weeks and the range it’s trading in has been shortening over time as its volatility plunges. Technical indicators now suggest that range may be broken upward.

As reported,  CryptoCompare’s June 2021 Exchange Review revealed that the drop in prices and volatility took a toll on cryptocurrency trading volumes, with spot trading volumes decreasing by 42.7% compared to May and derivatives volumes dropping by 40.7% over the same period.

A new report published by Glassnode, first reported on by Benzinga, shows that bitcoin’s reserve risk indicator, which measures the confidence and conviction of long-term holders, is currently at 0.003, down from a mid-April all-time high of 0.007. A lower reserve risk implies higher confidence in the market.

The current reserve risk is a bullish indicator, but it has been dropping steadily, which suggests that a trend reversal may still take some time. Bitcoin’s 30-day volatility has meanwhile dropped to 4.58%, a value that hasn’t been seen since March before BTC hit its $64,000 all-time high.

Moreover, Glassnode has revealed that bitcoin exchange balances have “started to show signs of sustained outflows since the sell-off” on June 22. Over the last three weeks, the firm claims approximately 40,000 BTC were withdrawn from exchanges, after 140,000 were deposited from 2021 lows.

Bitcoin’s MVRV Long/Short ratio has also dipped below 0% for the first time in 14 months on July 10, implying that traders are losing on their investments and now see a buying opportunity in the market.

These indicators all point that a trend reversal is likely to take place in the near future but suggest a bull run that will see BTC recover to its all-time high a short amount of time is unlikely. At the time of writing bitcoin is trading at $33,200 after falling from a $35,000 weekly high.

DISCLAIMER

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

IMAGE CREDIT

Featured image via Unsplash.

Source: Read Full Article