HomeNewsBitcoin Market Update: Relief Rally Prospects and Key Metrics Leading to Bullish...

Bitcoin Market Update: Relief Rally Prospects and Key Metrics Leading to Bullish Sentiment

- Advertisement -
  • Bitcoin shows signs of a potential ‘relief rally’ amidst easing selling pressure and market stabilization trends.
  • Santiment data indicates reduced trader negativity, suggesting a shift towards positive market sentiment.

ETHNews Analysts observe a possible turnaround in Bitcoin’s market following recent selling exhaustion. Recent data from Santiment points to easing selling pressure across crypto markets, signaling a potential shift towards a positive trend.

Source: Santiment

The global crypto market briefly exceeded $2.35 trillion on July 2 before a minor contraction, shedding about $10 billion in market cap.

Bitcoin itself experienced a slight dip from its peak of $63,790 to $62,461, marking a 1.2% decrease. ETHNews Analysts interpret these movements as early signs of a market turnaround post a deep June.

Santiment highlighted reduced negativity and lower trader losses as precursors to a potential ‘relief rally.’

Source: Santiment

Minkyu Woo, an analyst at CryptoQuant, echoed these observations, noting a decline in Tether outflows from exchanges.

Observing the trend from 2023 to the present, the decrease in outflows after a strong surge indicates that the large-scale selling pressure on exchanges is diminishing. – Minkyu Woo

This reduction suggests a shift towards asset retention rather than liquidation, possibly driven by improved investor sentiment following recent market events.

Examining Bitcoin’s Metrics Further Strengthens the Bullish Case

The Market Value to Realized Value (MVRV) ratio, indicating market sentiment, recently showed a slight decline to 1.96, suggesting potential undervaluation and a buying opportunity.

Bitcoin’s network activity also saw an uptick, with active addresses rising from 3.14 million to 3.88 million, indicating increased user engagement and overall market health.

Source: CryptoQuant

These positive indicators coincide with ETHNews reports on Bitcoin miner reserves stabilizing, hinting at reduced selling pressure from miners. This aligns with the narrative of a market poised for recovery.

Source: Santiment

ETHNews analysts continue to monitor these developments, and the crypto community awaits further clues on whether Bitcoin’s recent resilience will translate into sustained bullish momentum, potentially sparking a broader market rally.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628