- Bitcoin’s price declined by more than 4% in the last 24 hours.
- Most market indicators and metrics hinted at a further price drop.
Bitcoin [BTC] has struggled to turn bullish over the last couple of days as its price continued to trade under $67k.
However, the entire trend might change soon as a key indicator hinted at a possible price increase that could allow the king of cryptos to touch $86k in the coming weeks or months.
Bitcoin’s road to $86k
The bears dominated the last week, causing most cryptos’ prices to drop, and BTC was not an exception. According to CoinMarketCap, BTC witnessed a major price correction on the 6th of June.
The coin’s price had dropped by over 4% in the last seven days. At the time of writing, BTC was trading at $66,344 with a market capitalization of over $1.3 trillion.
However, Ali, a popular crypto analyst, recently posted a tweet highlighting a fact that gave hope for a price increase. As per the tweet, BTC’s mining cost was $86,668.
If historical trends are to be considered, then BTC’s might begin a bull rally soon, as it has always surged above its average mining cost.
AMBCrypto then analyzed Glassnode’s data to find out how miners were behaving while BTC’s mining cost touched $86k. We found that they have intent to sell.
This was evident from the massive dip in its miners’ net position change, showing that miners were not confident in BTC and hence chose to sell their holdings.
Miners’ balance also registered a decline over the past few weeks.
Source: Glassnode
Will BTC remain bearish?
Since miners were exerting selling pressure on BTC, AMBCrypto planned to take a look at other datasets to find whether BTC would remain bearish.
AMBCrypto’s analysis of CryptoQuant’s data revealed that BTC’s net deposit on exchanges was high compared to the last seven days’ average.
The king of cryptos’ Coinbase Premium was also red, meaning that selling sentiment was dominant among US investors. On top of that, Bitcoin’s NVT ratio registered a sharp uptick on the 15th of June.
A rise in the metric means that an asset is overvalued, which indicates a possible price correction.
Source: Glassnode
Things looked even worse, as most market indicators looked bearish. For instance, the MACD displayed a bearish advantage in the market.
The Chaikin Money Flow (CMF) registered a decline and was resting well under the neutral mark. BTC’s Relative Strength Index (RSI) was also under the neutral mark.
Read Bitcoin’s [BTC] Price Prediction 2024-25
These indicators suggested a further price decline.
Nonetheless, BTC’s price had touched the lower limit of the Bollinger Bands. Whenever that happens, it hints at a northward price recovery in the coming days.
Source: TradingView