Flow

bullish

Bitcoin

when

Reversal

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin’s average exchange inflow/outflow ratio indicates strong buying pressure, suggesting a potential price increase.</li> 
 <li>Despite a bearish trend in the derivatives market, Bitcoin’s NVT ratio shows the asset is undervalued.</li> 
</ul>  
<p>Bitcoin’s [BTC] price experienced a significant drop last week, losing its bullish momentum. However, this trend may soon change as a key metric has reached a rarely seen level, indicating potential for a price increase. </p> 
<h2 id="bitcoin-hits-critical-level">Bitcoin Hits Critical Level</h2> 
<p>Over the past week, Bitcoin’s price has declined by more than 8%, with the cryptocurrency currently valued at $59,044 and a market capitalization exceeding $1.16 trillion. Crypto analyst Axel Adler Jr. recently shared analysis using Bitcoin’s average exchange inflow/outflow ratio. This metric suggests strong buying pressure, a signal that has only occurred six times in the past decade. Historically, when this metric indicates buying pressure, Bitcoin’s price has appreciated. </p> 
<h2 id="potential-for-trend-reversal">Potential for Trend Reversal</h2> 
<p>Analysis of data from Glassnode reveals that Bitcoin’s NVT ratio has dipped, typically indicating that an asset is undervalued and hinting at a potential price increase. Additionally, data from CryptoQuant shows that Bitcoin’s exchange reserves have been decreasing, suggesting increased buying pressure. However, the derivatives market paints a different picture, with a decline in Bitcoin’s funding rate and a dominant selling sentiment. </p> 
<p>Technical indicators suggest that the bearish price trend may continue, with the MACD flashing a bearish crossover and the Relative Strength Index (RSI) moving sideways. However, the Chaikin Money Flow (CMF) offers a glimmer of hope for a trend reversal as it moves towards the neutral zone.</p>

Bitcoin: Assessing the Possibility of a Rally Following Key BTC Milestone Reached

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CoinEagle.com

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