Bitcoin Price Shows Signs Of Recovery: Is The Correction Over?

According to CryptoPotato, Bitcoin's price is showing signs of recovery, raising questions about whether the recent correction has ended and if new all-time highs are still achievable. The price has been trending downwards since it failed to break above the $75K mark in early June. However, the $60K support level has proven to be robust, preventing further drops. Given the recent bullish candle, the market might be forming a bottom near the $60K mark and could soon start a new rally. This scenario remains valid as long as the $60K support level and the 200-day moving average, around the $58K mark, hold.

The 4-hour chart also indicates a positive trend. The BTC price has finally broken above the bearish trendline that has been valid over the past month. This could be the first step towards a bullish reversal, provided the price stays above the trendline. The RSI is also showing values above 50%, suggesting that the momentum is turning bullish. As long as the price stays above the trendline and the $60K level, investors can remain optimistic that the correction has ended.

On-chain metrics provide valuable insights into whether Bitcoin's price has truly found a bottom after weeks of bearish price action. The Bitcoin Exchange Reserve metric, which measures the amount of BTC held on exchange wallets, is one such metric. Increases indicate that investors are depositing their coins onto the exchanges for selling, while decreases suggest that holders are withdrawing their coins from the exchanges to keep in their personal wallets. The Exchange reserve metric has been rapidly declining over the past few months, although it has risen slightly recently. This suggests that many investors have likely sold their coins at the later stages of the recent price drop. While an increase in supply is generally not good for the price, it might indicate a capitulation phase that typically occurs at the end of bearish price moves. If the Exchange Reserve metric returns to its decreasing trend, the market could potentially reach a new all-time high soon.