Bitcoin price wavering around $60000 for the past three weeks has created an uncertain sentiment among crypto participants. The consolidation trend could be linked to mounting recession fear, a series of outflows from BTC ETFs, and the lack of a clear bottom formation. However, such FUD often shakes out the speculative short-term traders while the big players accumulate for a potential rebound.
Bitcoin Price to Rebound as Onchain Metric Flashes Buy Signal
Despite the Bitcoin price consoldation, the average Exchange Inflow/Outflow ratio signals a potential rebound in the crypto market. A recent tweet by Crypto Quant’s author Axel Adler Jr highlights that this metric signals a rare strong buying pressure, marking only the sixth occurrence in the past decade.
Historically, such signals have preceded major price rallies, with the last occurrence leading to BTC’s meteoric rise to all-time highs. Axel also added that retail investors often don’t reach for such a signal and may enter after the Bitcoin price exceeds $70000.
The average Exchange Inflow/Outflow ratio indicates strong buying pressure. This is the sixth time this has happened in the last ten years.
Retail investors, of course, won’t react, they will enter when the price is above $70K. pic.twitter.com/WWzqKa776E
— Axel Adler Jr (@AxelAdlerJr) August 30, 2024
Another tweet from analyst Woominkyu accentuates a key relationship between BTC price and hash price, which reflects mining profitability. According to the added chart, a low hash price (highlighted in blue boxes) has coincided with Bitcoin reaching its price bottom.
This correlation implies the recent drop in hash price indicates the pioneer cryptocurrency is near another price bottom, projecting a potential buy signal for investors.
Lowest Bitcoin Hash Price: A Potential Buy Opportunity
It shows where Bitcoin’s Hash Price dropped to its lowest, often aligning with Bitcoin price bottoms.
Historically, these dips have been buying opportunities, suggesting the current low Hash Price might indicate a similar… pic.twitter.com/qdr227tWCL
— 우민규 (Woominkyu) (@Woo_Minkyu) August 30, 2024
Moreover, the renowned analyst Ali Martinez highlights the large investors’ behaviors in the current market dip. Data from Santiment shows a 40,000 BTC drop in exchange supply within the last 48 hours, equivalent to approximately $2.40 billion.
These largest withdrawals from the exchange indicate that smart money traders are accumulating Bitcoin in anticipation of potential recovery.
Seems like some major players bought the #Bitcoin dip! On-chain data from @santimentfeed reveals a 40,000 $BTC drop in exchange supply over the past 48 hours, equivalent to about $2.40 billion. This aligns with a notable surge in exchange outflows! pic.twitter.com/9ZS8yrwFrI
— Ali (@ali_charts) August 30, 2024
BTC Price Hints Temporary Consolidation Amid Flag Pattern
By press time, the BTC price traded at $59540, boosting a market cap of $1.174 trillion. The current consolidation with short-body candles with long-wick indicates a lack of initiation from market buyers or sellers.
However, the daily chart reveals a bullish contention pattern called a flag. The chart pattern drives a temporary sideways trend within two trendlines for prevailing bullish momentum to regain strength.
If the pattern holds true, the Bitcoin price prediction hints at a potential 14% rise to challenge the overhead trendline at $68. A successful breakout will bolster buyers to drive a rally past $70000 and target $83000.
BTC/USDT – 1d Chart
Conversely, a breakdown below the flag support trendline will indicate a deeper correction looming for the Bitcoin price.
The post Bitcoin Price May Hit $70K Soon as Multiple Buy Signals Emerge appeared first on CoinGape.
