Is Bitcoin Poised for a Rally? On-Chain Data Suggests Accumulation Amid Price Volatility
The future of Bitcoin (BTC) hangs in the balance as the cryptocurrency struggles to maintain its price above the $65,000 support level. However, on-chain data from CryptoQuant suggests that there may be a glimmer of hope for Bitcoin investors.
According to analyst Ali Martinez, a section of investors is increasingly accumulating Bitcoin following a recent dip in the market. The Taker Buy Sell Ratio on the HTX cryptocurrency exchange has surged to 545, indicating strong buy pressure. This spike in the metric is often seen as a bullish signal, hinting at a potential upward price movement for Bitcoin.
Martinez provided a chart that tracks the Bitcoin price alongside the Taker Buy Sell Ratio over the past week. While Bitcoin’s price has shown a general downtrend, the spikes in the Taker Buy Sell Ratio on June 9 and June 15 suggest that investors are accumulating Bitcoin in anticipation of a price recovery or breakout.
Historically, spikes in the Taker Buy Sell Ratio have preceded price increases, leading some to believe that a Bitcoin rally could be on the horizon. This rally could help Bitcoin regain its footing in the market, as it has been underperforming compared to other asset classes in recent months.
However, there is still uncertainty surrounding Bitcoin’s next trajectory, with analysts divided on whether bears or bulls will take charge. The 20-week exponential moving average (EMA) at $61,603 is seen as a key anchor for the next bullish movement, according to analyst CryptoCon.
At the time of writing, Bitcoin was trading at $66,200, correcting by almost 1% in the last 24 hours. While the buying pressure suggests a potential breakout, technical analysis indicates that bearish sentiments currently dominate the market. Breaking the immediate resistance at $67,000 could pave the way for a bullish movement, but losing the $65,000 support level could spell trouble for Bitcoin.
As always, it’s important to remember that investing in cryptocurrencies is speculative and comes with risks. It’s essential to do thorough research and consult with a financial advisor before making any investment decisions.