bitcoin (B T c) is still below a major moving average and is “not a bullish signal,” says a new report, but signs of a rebound have finally arrived.
In its latest market update Posted on June 11, trading suite DecentTrader highlighted three on-chain indicators that call for an imminent bullish continuation for BTC/USD.
Indicators resonate after March 2020
Bitcoin has now spent almost a month below its 200-day moving average (DMA). It is concerning, Decentrader warns, and external factors such as geopolitical sentiment continue to weigh on sentiment.
“Bitcoin has kept the market on its toes as it continues to trade between weekly support at $32,000 and near-term resistance near the 200DMA, currently at $42,000,” summarized the update.
“Uncertainty following the recent crash and President Biden’s announcement at the G7 summit this coming weekend, fears about how the US will deal with cryptocurrencies in relation to the recent ransomware attacks are driving the price down for now. “
Bitcoin continued to trade near $36,000 over the weekend, amid some signs of a break below the resistance near $40,000.
Fortunately, however, several measures of on-chain strength now suggest that a bounce from a bearish phase within an overall bull market is now underway.
These are well known – active addressing sentiment, spent output profit ratio (SOPR) and stock-to-flow divergence. the latter two are widely covered by Cointelegraph.
Active addresses, meanwhile, determine whether bitcoin is overbought or oversold at a certain price point relative to the number of active addresses on the blockchain.
Like the SOPR, the indicator is currently at a bear market bottom in December 2018 and just after the March 2020 crash.
So if history repeats itself, there is only one way out.
“We received the same signal yesterday, indicating that the $BTC price was oversold relative to active addresses on-chain and may now be ready to bounce back in the coming weeks,” the update explained.
$85,000 within months?
Also on the cards is a rally on the stock-to-flow trajectory, something that its creator, PlanB, They say One would be “surprise” that this was not to happen.
Amid the expectation that BTC/USD will still reach $100,000 this year, Decentrader predicted that it would take only a few months for Bitcoin to get back on track.
“While we may not rally so hard and bullish this time around, basically nothing has changed with the way bitcoin works, nothing has broken, we are very bad after a strong rally at the start of the year. are experiencing media coverage,” the company concluded.
“So we can very well see that the price will return to the stock to flow line in the coming months. This means a new all-time high for $BTC before the end of this year, as the stock to flow line is currently sitting is at $85,000.”