Despite a 15% decrease in Bitcoin’s price since mid-March, there are indications that the bull run may not be coming to an end as many fear.
One crucial metric to consider is the Fear and Greed Index, which measures investor sentiment on a scale from 0 to 100. With the index recently entering “fear” and neutral territory, it may actually present a buying opportunity for savvy investors.
BTC Exchange Netflow
Another factor to take into account is Bitcoin’s exchange netflow, which has shown a trend of outflows surpassing inflows in recent months. This shift towards self-custody methods reduces immediate selling pressure and can be seen as a bullish sign for the asset.
Relative Strength Index (RSI)
Bitcoin’s Relative Strength Index (RSI) is a technical analysis tool that indicates whether an asset is overbought or oversold. With the RSI currently at 58 and only crossing the 70 mark twice in the past month, it suggests that a correction may not be immediately forthcoming.
Lastly, Bitcoin’s Market Value to Realized Value (MVRV) ratio provides insight into the cryptocurrency’s valuation and potential market trends. A score above 3.5 may indicate that the price is nearing its peak, while a ratio below 1 warns of a potential bottom. With the MVRV ratio dipping under 2 at the beginning of July, it may actually be signaling a buying opportunity for Bitcoin investors.
While Bitcoin has experienced a significant price drop in recent months, various indicators suggest that the bull run may not yet be over. With the Fear and Greed Index showing signs of fear, Bitcoin’s exchange netflow pointing towards reduced selling pressure, the RSI indicating a balanced market, and the MVRV ratio presenting a buy signal, investors may want to carefully consider these factors before making any decisions regarding their Bitcoin holdings.