Bitcoin has been signaling several weeks of consecutive red closes. Such was the case in the past two months when the leading cryptocurrency experienced 9 consecutive weeks of red shutdown. Unsurprisingly, this has caused a very bearish picture of the digital asset. However, the tide appears to be turning as Bitcoin has now ended its streak. The break above $30,000 in the early hours of Monday put BTC on its first weekly close in more than two months.
Better days coming for Bitcoin?
While the bitcoin price has been on a recovery, it is not erasing more than two months of bearish trends. This first green in a long line of red does not automatically trigger an uptrend for the digital asset. However, what it does do is show that investor sentiment is starting to shift for the better. There is no doubt that sellers will continue to dominate the market during the better part of next week but a slight increase in positive inflows is expected from here.
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Bitcoin has not had a green weekly close since March. Even before that, feelings turned for the worse. This continues into the new week as the Fear and Greed Index currently sits at 13, which puts him in great fear. BTC’s rally above $32,000 last week helped ease fear in the market but the negative sentiment is back again with the crash below $29,000.
BTC settles above $31,000 | Source: BTCUSD on TradingView.com
What is expected from now on are shaky moves for Bitcoin. The digital asset needs to secure a position above $35,000 in order to be considered again in another uptrend. However, there are several significant resistance points awaiting the cryptocurrency.
What do exchange flows say?
Bitcoin exchange inflows reflect the positive sentiments returning to the market. Data from Glassnode shows that over the past day, there was $6.6 billion in BTC moving to exchanges while $7.9 billion was moved. This yields a net negative flow of $1.3 billion, which indicates that more investors are moving towards accretion rather than direct sales.
Weekly exchange stream on the chain 🚨# bitcoin BTC dollars
➡️ $6.6 billion in
⬅️ $7.9 billion out of
📉 Net Flow: $1.3 billion# Ethereum ETH dollar
➡️ $3.3 billion in
⬅️ $3.2 billion out of
📈 Net Flow: +108.6 Million Dollars#Rope (ERC20) USDT . dollars
➡️ $3.4 billion in
⬅️ $4.2 billion
📉 Net Flow: $781.3 Millionhttps://t.co/dk2HbGwhVw
– glassnode alerts (glassnodealerts) 6 June 2022
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Bitcoin is still a long way from all-time highs and indications are that this ATH value is years away. However, in the short term, the bitcoin price is poised to hold out against the bears. With the majority of BTC investors still profiting, the sell-off is not expected to end anytime soon. But it is approaching the point of exhaustion.
Featured image from The Cryptonomist, chart from TradingView.com
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