Bitcoin marks first green weekly close after two months in the red
Bitcoin has marked several weeks of consecutive red closes. This has been the case for the past two months when the leading cryptocurrency had seen 9 consecutive weeks of red closes. Unsurprisingly, this had damaged a very bearish image for the digital asset. However, it appears that the tide has begun to turn as bitcoin has now ended its streak. A hiatus of more than $30,000 in the early hours of Monday set BTC to its first weekly close in more than two months.
Better days ahead for Bitcoin?
While the price of bitcoin is recovering, it hasn’t exactly cleared more than two months of bearish trends. This first green in a long line of reds does not automatically trigger a bull trend for the digital asset. However, it shows that investor sentiment is starting to turn for the better. Sellers will no doubt continue to dominate the market for much of next week, but positive inflows are expected to pick up from here.
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Bitcoin has not had a green weekly close since the month of March. Even before that, sentiment had deteriorated. This continues into the new week as the Fear & Greed Index is currently at 13, making him extremely scared. BTC’s rise above $32,000 last week had helped ease fears in the market, but negative sentiment had once again returned with the crash below $29,000.
BTC settles above $31,000 | Source: BTCUSD on TradingView.com
What is expected as of now is shaky moves for BTC. The digital asset must secure a position above $35,000 to qualify for a new bull trend. However, several key points of resistance lie ahead for the cryptocurrency.
What exchange inflows say
Bitcoin exchange influx reflects the positive sentiment returning to the market. Data from Glassnode shows that $6.6 billion worth of BTC moved to exchanges in the past day, while $7.9 billion moved. This equates to negative net flow of $1.3 billion, indicating that more investors are moving towards accumulation rather than outright sell-off.
🚨 Weekly on-chain exchange flow 🚨#Bitcoin $BTC
➡️ $6.6 billion in
⬅️ $7.9 Billion Off
📉 Net Power: -$1.3B#Ethereum $ETH
➡️ $3.3 billion in
⬅️ $3.2 Billion Off
📈 Net Power: +$108.6 Million#Tether (ERC20) $USDT
➡️ $3.4 billion in
⬅️ $4.2 Billion Off
📉 Net Power: -$781.3Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) June 6, 2022
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Bitcoin remains a long way from its all-time high and indicators point to a recovery to that ATH value that is still years away. Nevertheless, for the short term, the price of bitcoin is poised to hold out against bears. Since the majority of BTC investors are still making a profit, the sell-off is not expected to disappear anytime soon. But it is approaching a point of exhaustion.
Featured image of The Cryptonomist, chart from TradingView.com
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