Flow

bullish

Bitcoin

Time

<ul>
 <li aria-level="1">Analysts foresee a potential recovery based on short-term Sharpe ratios mirroring previous cycles.</li>
 <li aria-level="1">Despite market volatility, Bitcoin shows signs of decoupling from traditional equity markets like the S&amp;P 500.</li>
</ul>
Bitcoin has recently shown modest recovery after experiencing a price drop last month. Currently, it stands at $56,320, reflecting a small daily decrease of 3.78%.

<div class="cryptoboxes" id="mcw-12344" data-realtime="on">
 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-chartcoin="BTC" data-chartcurrency="USD" data-chartrate="1.000268" data-charttype="chart" data-chartview="day" data-charttheme="light" data-chartsmooth="true" data-chartareacolor="" data-chartbgcolor=""></div>
</div>
Over the past week, however, it has decreased by 6.32%, and a 4.37% drop over the past month positions it 20% below its all-time high earlier this year.
<h2 id="b-market-analysis-from-crypto-analysts-b">Market Analysis from Crypto Analysts</h2>
ETHNews analysts are <a href="https://www.ethnews.com/will-bitcoin-crash-again-top-analyst-reveals-alarming-trend/" rel="noopener noreferrer nofollow">observing Bitcoin’s</a> performance closely, particularly in light of historical data which suggests potential for recovery.&nbsp;
CryptoQuant analyst points to the short-term Sharpe ratio, a measure of investment performance adjusted for risk, which has declined similarly to patterns observed before notable price increases in past cycles.
<figure id="attachment_91171" aria-describedby="caption-attachment-91171" style="width: 100%" class="wp-caption aligncenter"><img fetchpriority="high" decoding="async" class="size-full wp-image-91171" src="https://www.ethnews.com/wp-content/uploads/2024/09/btc-sharpe-ratio.jpg" alt="btc-sharpe-ratio" width="900" height="507">
 <figcaption id="caption-attachment-91171" class="wp-caption-text">
 Source: CryptoQuant
 </figcaption>
</figure>
Further <a href="https://www.ethnews.com/why-bitcoin-might-crash-again-this-september-insider-insights-revealed/" rel="noopener noreferrer nofollow">ETHNews insights</a> suggest Bitcoin’s performance is becoming less correlated with the broader equities market, such as the S&amp;P 500. This could indicate a unique market path for Bitcoin that might not parallel traditional financial markets, potentially advantageous in volatile times.
<h2 id="b-signals-of-growing-investor-confidence-b">Signals of Growing Investor Confidence</h2>
Data on Bitcoin’s transactions and holdings show good market activities. The decrease in the fund flow ratio suggests that fewer investors are selling off their Bitcoin, favoring long-term holding.
<figure id="attachment_91175" aria-describedby="caption-attachment-91175" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-91175" src="https://www.ethnews.com/wp-content/uploads/2024/09/btc-santiment.jpg" alt="btc-santiment" width="900" height="605">
 <figcaption id="caption-attachment-91175" class="wp-caption-text">
 Source: Santiment
 </figcaption>
</figure>
 Additionally, a noticeable reduction in Bitcoin liquidations points towards sustained investor interest and a readiness to maintain positions despite market fluctuations.
<figure id="attachment_91183" aria-describedby="caption-attachment-91183" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-91183" src="https://www.ethnews.com/wp-content/uploads/2024/09/btc-short.png" alt="btc-short" width="1852" height="525">
 <figcaption id="caption-attachment-91183" class="wp-caption-text">
 Source: Coinglass
 </figcaption>
</figure>
Other technical indicators reinforce the possibility of a continued recovery. The reduction in liquidations and the fund flow ratio are indicative of an accumulation phase.
<figure id="attachment_91179" aria-describedby="caption-attachment-91179" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-91179" src="https://www.ethnews.com/wp-content/uploads/2024/09/Bitcoin-Fund-Flow-Ratio-All-Exchanges-1-2048x1152-1.png" alt="Bitcoin-Fund-Flow-Ratio-All-Exchanges-1-2048x1152" width="2048" height="1152">
 <figcaption id="caption-attachment-91179" class="wp-caption-text">
 Source: CryptoQuant
 </figcaption>
</figure>
If these trends hold, Bitcoin could challenge existing resistance levels near $60,000 and possibly retest previous highs around $64,752.
<figure id="attachment_91187" aria-describedby="caption-attachment-91187" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-91187" src="https://www.ethnews.com/wp-content/uploads/2024/09/BTCUSDT_2024-09-04_09-59-32.png" alt="BTCUSDT_2024-09-04_09-59-32" width="1384" height="857">
 <figcaption id="caption-attachment-91187" class="wp-caption-text">
 Source: Tradingview
 </figcaption>
</figure>
<h2 id="b-analyzing-market-sentiments-and-trading-trends-b">Analyzing Market Sentiments and Trading Trends</h2>
Ali, recently <a href="https://x.com/ali_charts/status/1830938425270378916" rel="noopener noreferrer nofollow">tweeted</a> that over half of the traders on Binance are leaning bullish on Bitcoin, with 51.79% of investors holding long positions. This increase in long positions typically signals a growing bullish sentiment in the market.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Top <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> traders on <a href="https://twitter.com/binance?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Binance</a> show a slight bullish tilt, with 51.79% currently holding long positions on <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a>. <a href="https://t.co/p3gi2uLOYW" rel="noopener noreferrer nofollow">pic.twitter.com/p3gi2uLOYW</a>
 — Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1830938425270378916?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 3, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<h3 id="b-bitcoin-s-valuation-and-market-position-b">Bitcoin’s Valuation and Market Position</h3>
Current analyses from ETHNews reveal that Bitcoin is trading below its estimated market bottom. The Pi Cycle Top indicator places this bottom at $58.9k, suggesting potential upward movement in the near future. 
<figure id="attachment_91191" aria-describedby="caption-attachment-91191" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-91191" src="https://www.ethnews.com/wp-content/uploads/2024/09/glassnode-studio_btc-pi-cycle-top-indicator-usd.png" alt="glassnode-studio_btc-pi-cycle-top-indicator-usd" width="1800" height="1013">
 <figcaption id="caption-attachment-91191" class="wp-caption-text">
 Source: Glassnode
 </figcaption>
</figure>
This points to a possibly undervalued state for Bitcoin, hinting at a strategic buying opportunity.
<h2 id="b-technical-indicators-and-investment-opportunities-b">Technical Indicators and Investment Opportunities</h2>
Further investigation into Bitcoin’s trading patterns shows promising signs for buyers. The Bitcoin Rainbow Chart categorizes the current price level as “Basically a Fire Sale,” indicating that Bitcoin’s price is lower than its value potential. 
<figure id="attachment_91195" aria-describedby="caption-attachment-91195" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-91195" src="https://www.ethnews.com/wp-content/uploads/2024/09/Bitcoin-Rainbow-Chart.png" alt="Bitcoin Rainbow Chart" width="2048" height="969">
 <figcaption id="caption-attachment-91195" class="wp-caption-text">
 Source: Blockchaincenter
 </figcaption>
</figure>
This discrepancy highlights an excellent chance for accumulation.
Data from CryptoQuant <a href="https://cryptoquant.com/asset/btc/summary" rel="noopener noreferrer nofollow">shows</a> a decrease in Bitcoin’s Exchange Reserve, indicating increased buying activity as investors start to accumulate more BTC. 
<figure id="attachment_91199" aria-describedby="caption-attachment-91199" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-91199" src="https://www.ethnews.com/wp-content/uploads/2024/09/BitcoinBTC_Overview-2024-Sep-04-10_00.png" alt="Bitcoin(BTC)_Overview (2024 Sep 04 10_00)" width="2560" height="1248">
 <figcaption id="caption-attachment-91199" class="wp-caption-text">
 Source: CryptoQuant
 </figcaption>
</figure>
The Korea Premium index is green, suggesting strong buying sentiment among Korean investors.&nbsp;
However, <a href="https://www.ethnews.com/could-u-s-government-crash-bitcoin-exclusive-insights-revealed/" rel="noopener noreferrer nofollow">the situation looks different in the U.S.</a>, where the Coinbase Premium has turned red, indicating a possible inclination towards selling among American traders. 
<figure id="attachment_91203" aria-describedby="caption-attachment-91203" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-91203" src="https://www.ethnews.com/wp-content/uploads/2024/09/BTCUSD_2024-09-04_14-03-47-2048x1146-1-e1725458787813.png" alt="BTCUSD_2024-09-04_14-03-47-2048x1146" width="2048" height="1112">
 <figcaption id="caption-attachment-91203" class="wp-caption-text">
 Source: Tradingview
 </figcaption>
</figure>
The Chaikin Money Flow (CMF) has seen an uptick, which might signify an approaching end to bearish price actions.&nbsp;
The post <a href="https://www.ethnews.com/experts-reveal-why-now-might-be-the-best-time-to-buy-bitcoin/" rel="noopener noreferrer nofollow">Experts Reveal Why Now Might Be the Best Time to Buy Bitcoin!</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

Experts Reveal Why Now Might Be the Best Time to Buy Bitcoin!

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