Despite the volatility and Bitcoin (BTC) price falling to a five-month low, key indicators suggest bulls may maintain the edge, hinting at a possible recovery in BTC's price trajectory. 📈

- BTC faced a turbulent start to the month, falling more than 10.50% to around $57,000 on July 7th.

- The new decline in the price of Bitcoin was accompanied by a growing discrepancy between falling prices and the rising relative strength index (RSI).

- In technical analysis, this often indicates a possible change in trend or a slowdown in the current downtrend.

Two other classic technical indicators support a bullish reversal scenario.

- Firstly, Bitcoin formed a bullish hammer on the candlestick chart on July 5th.

- Secondly, Bitcoin's daily RSI reading is near its oversold threshold of 30, which often precedes a period of consolidation or recovery.

The chances for Bitcoin to resume its bull run in the coming weeks are increasing due to the increasing likelihood of an interest rate hike in September.

- As of July 7, traders on Wall Street saw a 72% chance that the Federal Reserve would cut interest rates by 25 basis points.

Another bullish indicator for the BTC market is the resumption of inflows into US exchange traded funds (ETFs) after two straight days of outflows.