Bitcoin saw somewhat stable upside trends over the previous two months, following declines to 2022 lows of $17,774, explored in mid-June. Meanwhile, the bellwether crypto crossed above $24K recently. That confirmed selling momentum ease for Bitcoin.
Nevertheless, the August 18 sessions witnessed trend reversals. Bitcoin reacted with a sharp plunge towards $21K, building another panic within the cryptocurrency community. However, multiple metrics seemed to favor bullishness.
For example, BTC’s exchange balance hit a 4-year low at 2,342,202.837 $BTC. That hinted at an optimistic market atmosphere. The question could emerge; will this development trigger a potential bull rally in the upcoming sessions?
The Answer
Bitcoin’s exchange balances exhibited southbound strength after recording an uptick in mid-July, reaching a 4-year low regardless of the latest price actions. Moreover, the 24hr Bitcoin price chart supported bullishness, painting green.
While publishing this post, Bitcoin traded at $21,343.01, with $408,324,544,759 market cap. A brief recovery appears as Bitcoin gained 1.15% within the past day. Moreover, BTC’s non-zero balance addresses surged from 42,643,752 to the high of 42,699,265 on August 22.
That showed Bitcoin’s investor confidence steadied despite the latest price volatility. Meanwhile, the MVRV ratio declined as prices dipped, touching the 0.9617 monthly low before rebounding upward. While publishing this post, the MVRV ratio remained under the one mark.
Moving Forward
Evaluating Bitcoin’s four-hour chart revealed worrying sentiments for long-term investors. A bullish climbing triangle setup emerged, suggesting a potential upsurge soon. Furthermore, the Moving Average Convergence Divergence formed a bullish cross on August 21.
The Bollinger Bands shows that Bitcoin price could witness a crunch after exploring high volatility levels for some time. That minimizes the chances of northward breakouts. Besides that, the EMA (Exponential Moving Average) ribbon supported BB’s readings, with the 55-day Exponential Moving Average hovering well beyond the 20EMA, surging bearish preference in the marketplace.
The cryptocurrency market printed brief upswings within the past 24 hours, with most tokens painting small greens. While publishing this blog, the overall crypto market capitalization stood at $1.02 trillion, gaining 1.47% within the past day. Upcoming directions remain unclear at the moment.
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