Market liquidity begins to rise, is Bitcoin going to rebound?
Short forces weaken, and Bitcoin bullish signals emerge! !
Bitcoin has recently recovered slowly from the plunge of $53,500, and now the market sentiment is optimistic. The Puell multiple indicator shows that Bitcoin may be undervalued now. This makes me think that Bitcoin may rise sharply. But to really be sure that it will rise, it depends on whether Bitcoin can stand firmly above $60,000. Steady investors may wait until it rises to $66,000 or $72,000, which will make it more certain that it will rise.
Puell multiple and miners' ability to make money
CryptoQuant data shows that the Puell multiple indicator suggests that Bitcoin may be about to bottom out. This indicator is very accurate in the bear market, and now it is falling. This is very similar to the situation in 2016 and 2020, when Bitcoin rose sharply. The decline in the Puell multiple may mean that Bitcoin is about to end its decline, and a new round of bull market may be about to begin. But when it will start, it is still unknown.
Current market situation
Bitcoin has risen 7% from its low in July 2024. Although it has risen a bit, the previous decline still shows that the short-selling force is strong. Only when Bitcoin rises to $60,000, or even $66,000 or $72,000, and stabilizes, can we be sure that it will continue to rise. In this way, Bitcoin has the potential to challenge the previous high of $73,800.
USDT liquidity and Bitcoin supply
The cryptocurrency market is also affected by the increase in USDT liquidity. At the beginning of the third quarter of 2024, the increase in stablecoin liquidity shows that people are more interested in high-risk assets such as Bitcoin. However, the recent sudden increase in Bitcoin supply is mainly due to the sale of some Bitcoin by Germany, which has prevented the price from rising. Once these extra Bitcoins are digested by the market, I estimate that the price will continue to rise. Especially now that spot Bitcoin ETFs are very attractive to investors. Data shows that by July 8, spot ETFs bought a lot of Bitcoin, with BlackRock buying the most.
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