Bitcoin
With Bitcoin down 12% in a month, is this the best time to buy BTC?
Bitcoin’s price dropped by double digits in the last 30 days, but there were chances of a trend reversal.
- The German government transferred BTC worth millions of dollars.
- However, buying sentiment remained dominant in the market.
The last month of the second quarter of the year has been in the best interest of Bitcoin [BTC] investors. This was the case as BTC witnessed multiple price corrections.
Meanwhile, the German government made a move that might have a negative impact on the king of cryptos’ price.
Are investors selling Bitcoin?
CoinMarketCap’s data revealed that over the last 30 days, BTC witnessed a more than 11% price decline. In the last seven days alone, the coin’s value sipped by over 6%.
At the time of writing, BTC was trading at $61,043.62 with a market capitalization of over $1.2 trillion. Thanks to the price drop, over 12% of BTC investors were out of money, as per IntoTheBlock’s data.
While that happened, Lookonchain’s latest tweet revealed that the German government transferred BTC worth millions of dollars.
To be precise, the German government transferred 750 BTC, worth $46.35 million, out again, of which 250 BTC, worth $15.41 million, was transferred to Bitstamp and Kraken.
As a result, AMBCrypto planned to check the data to find out whether selling pressure on BTC was high.
Our analysis of CryptoQuant’s data revealed that BTC’s net deposit on exchanges was high compared to the last seven days’ average, hinting at high buying pressure.
The king of cryptos’ exchange reserve also dropped sharply last month, further establishing the fact that investors were buying BTC while its price declined.
Nonetheless, selling sentiment was dominant among U.S. investors, as its Coinbase Premium was in the red at press time.
Source: CryptoQuant
What to expect from BTC
High buying pressure often results in price increases. Therefore, AMBCrypto checked Glassnode’s data and found a bullish metric.
As per our analysis, BTC’s NVT ratio dipped sharply in the last few days. Generally, a decline in the metric means that an asset is undervalued, which hints at a possible price rise in the days to follow.
Source: Glassnode
Read Bitcoin’s [BTC] Price Prediction 2024-25
We then planned to analyze the coin’s daily chart to better understand whether it was awaiting a price hike. As per our analysis, BTC’s Relative Strength Index (RSI) was resting near the oversold zone.
This might exert more buying pressure on the coin and help lift its price. The Chaikin Money Flow (CMF) also registered a slight uptick, indicating a possible price rise. Nonetheless, the MACD remained in the bears’ favor.
Source: TradingView
