After Bitcoin’s retracement to $55.4K, a very bullish signal is becoming evident. Traders active in the past year have averaged returns of just +1.8%, the lowest level since BTC surged past $20K in March 2023.
This low average return indicates potential for a significant upward move.
🤯 After Bitcoin's retrace to as low as $55.4K, a very bullish signal is within reach. Average returns of traders active in the past year are only +1.8%, the lowest level since BTC bounced above $20K for good back on March 11, 2023.
One of the top signals for all of crypto that… pic.twitter.com/Ve33dMgbeH
— Santiment (@santimentfeed) July 8, 2024
The network currently has 54.09 million non-empty Bitcoin wallets, a decrease of 566,000 since June 15th. This reduction suggests that impatient investors are exiting, potentially marking a FUD-driven bottom similar to January’s market behavior.
👋 There are currently 54.09M non-empty Bitcoin wallets on the network, dropping by a net of 566K since June 15th. Patient bulls should be pleased with this, as self-liquidating wallets from impatient non-believers is a sign of FUD-causing bottoms, just like we saw in January. pic.twitter.com/h2jK9YvCf9
— Santiment (@santimentfeed) July 9, 2024
Sentiment analysis on social platforms like X, Reddit, Telegram, 4Chan, and BitcoinTalk shows the most bearish outlook in a year. Historically, such high levels of fear often precede a rebound, catching the majority off guard.
😒 Bitcoin sentiment among traders on X, Reddit, Telegram, 4Chan, and BitcoinTalk are showing the most bearish narratives this week in a year. When the crowd shows FUD at this level, the chances of a rebound to catch the majority off guard is at its peak. pic.twitter.com/JLOhNB77n7
— Santiment (@santimentfeed) July 9, 2024
In the short term, Bitcoin is trading within a parallel channel. With BTC near the channel’s lower boundary, the TD Sequential indicator has flashed a buy signal, suggesting a potential rebound to around $58,300. According to analyst Ali Martinez, if Bitcoin hits $58,400, $16.81 million worth of positions on Binance will be liquidated. Bitcoin is currently trading at $57.4K.
On lower time frames, #Bitcoin is currently trading within a parallel channel. As $BTC hovers near the channel's lower boundary, the TD Sequential indicator flashes a buy signal, suggesting a potential rebound to around $58,300! pic.twitter.com/qe05Y6M0BY
— Ali (@ali_charts) July 9, 2024
$16.81 million will be liquidated in @binance if #Bitcoin surges to $58,400! pic.twitter.com/rosIr5ouOp
— Ali (@ali_charts) July 9, 2024
Yesterday, the German government accumulated 3,673 BTC ($207 million), reversing its recent outflows. After moving out 16,039 BTC (~$1 billion) last night, causing Bitcoin’s price to drop, the government’s quick reaccumulation suggests a strategic move.
🔴 The German Government accumulated back 3,673 $BTC ($207M) ~7 hours ago.
After moving out 16,039 $BTC (~$1B) last night and causing the #Bitcoin price to plummet, the German Government has already accumulated back 3,673 $BTC.
These on-chain activities raise several questions:… pic.twitter.com/sFTXUxOx1h
— Spot On Chain (@spotonchain) July 9, 2024
Bitcoin ETFs Records Massive Inflows
Meanwhile, Bitcoin ETFs saw significant inflows. On July 8, 2024, US Bitcoin ETFs recorded a net inflow of $295 million, the highest in 21 trading days, despite the $1 billion outflow from the German government. Notably, no US Bitcoin ETF, including Grayscale, experienced outflows yesterday. BlackRock’s IBIT ETF saw a single-day inflow of $187 million, the highest in 20 trading days.
🚨 $BTC #ETF Net Inflow July 8, 2024: +$295M!
• This is the highest net inflow by the 10 US Bitcoin ETFs in the past 21 trading days, which came despite the $1B worth of $BTC outflows from the German government.
• No US Bitcoin ETF, not even #Grayscale, saw an outflow… pic.twitter.com/kzJglkSShG
— Spot On Chain (@spotonchain) July 9, 2024
Overall, despite current market fear, several indicators point to a potential bullish reversal for Bitcoin.
We're witnessing the highest level of fear in the #crypto market since January 2023! pic.twitter.com/DhArw0Vbgm
— Ali (@ali_charts) July 9, 2024
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stocks.
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