Six key indicators build bullish expectations: Bitcoin prices may see a glimmer of recovery:
1. Bullish divergence strengthens BTC rebound prospects:
Although Bitcoin prices fell, the relative strength index (RSI) was rising, forming a bullish divergence. This shows that selling pressure is weakening and the market may be about to rebound.
2. Bullish hammer line, oversold RSI:
On July 5, Bitcoin formed a bullish hammer candlestick pattern, which is a signal that the market may reverse.
The daily RSI reading hovered around the oversold threshold of 30, indicating a consolidation or recovery period. Analysts predict that BTC may return to above $70,000.
3. Wall Street bets on a larger rate cut in September:
Traders' expectations for the Federal Reserve's September rate cut have risen, and rate cuts will benefit risky assets such as Bitcoin because they will attract investors to withdraw from low-return traditional investments.
4. Bitcoin ETF investors return after July's drop:
US spot Bitcoin ETFs resumed inflows two days after outflows, especially when the US released weak unemployment data, these funds attracted a large amount of inflows, indicating rising investor risk sentiment.
5. US money supply expands again:
M2 supply increased year-on-year, increasing economic liquidity. More money in circulation may prompt investors to seek risky assets with higher returns, such as Bitcoin.
6. Bitcoin miners' capitulation sell-off suggests Bitcoin price bottoming out:
Miners' capitulation sell-off indicator is close to historical lows, indicating that miners are scaling back operations or selling reserves to make ends meet. This usually occurs at the bottom of the market, suggesting that BTC prices may have bottomed out.
The sharp drop in hash rate reflects the financial pressure on the mining community, but it may also mean that more competitive miners will make greater profits and reduce the need to sell BTC.
In summary, these key indicators collectively point to a possible Bitcoin price recovery trend. However, it should be noted that market trends are affected by many factors, and investors should carefully assess risks and make decisions.
