- 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.
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.
📊 Looking at July's outlook, there is major reason to be optimistic after so much small trader capitulation. The crowd's negativity and average trader losses means that a relief rally may just be beginning. Read our June monthly recap here! https://t.co/1359OPYMuY
To read our… pic.twitter.com/ZEVCm3sz2H
— Santiment (@santimentfeed) July 2, 2024
Santiment highlighted reduced negativity and lower trader losses as precursors to a potential ‘relief rally.’
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.
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.
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.
