Bitcoin (Bitcoin) Is still below the key moving average, which is “not a bullish signal”, a new report said, but signs of a rebound have finally appeared.
In its Latest market update The trading suite Decentrader released on June 11 emphasized three on-chain indicators and called for BTC/USD to continue to be bullish.
Indicators echo the consequences in March 2020
Bitcoin has now been below its 200-day moving average (DMA) for nearly a month. Decentrader warned that this is worrying, and external factors such as geopolitical sentiment continue to affect sentiment.
“Bitcoin keeps the market alert as it continues to fluctuate between the weekly support level of $32,000 and the current 200DMA near-term resistance level of $42,000,” the update concluded.
“The uncertainty following the recent crash, and President Biden’s announcement at the G7 summit this weekend about how the United States will respond to cryptocurrencies from recent ransomware attacks are currently driving down prices.”
Bitcoin continued to fluctuate over the weekend and was trading at close to $36,000 at the time of writing, but there are few signs of resistance close to $40,000.
Fortunately, however, the strength indicators on a few necklaces now indicate that a rebound from the bearish phase of the overall bull market is underway.
These are all well-known—proactively address sentiment, expenditure output margin (SOPR), and inventory flow deviations.The latter two have been Extensive coverage Via Cointelegraph.
At the same time, active addresses measure whether Bitcoin is overbought or oversold at a certain price point relative to the number of active addresses on the blockchain.
Like SOPR, this indicator is currently at the same position as the bottom of the bear market in December 2018 and after the crash in March 2020.
Therefore, if history repeats itself, the only way out is upward.
The update explained: “We received the same signal yesterday, indicating that the BTC price has been oversold relative to the active addresses on the chain and is now ready to rebound in the next few weeks.”
$85,000 in a few months?
Also on the card is the trajectory of rebounding back to stock to flow, its creator PlanB, Say If it does not happen, it will cause a “surprise”.
With the hope that BTC/USD can still reach US$100,000 this year, Decentrader predicts that it may only take a few months for Bitcoin to get back on track.
“Although we may not bounce back so violently and quickly this time, Bitcoin’s operation has basically not changed, without any problems, we just experienced a lot of bad media reports after the strong rebound at the beginning of the year,” the company concluded .
“Therefore, we are likely to see the price rise to the stock liquidity line in the next few months. This means that before the end of this year, BTC will hit a record high because the stock liquidity line is currently at $85,000.”