Bitcoin Notes Major Buying Pressure Despite Dip To $66K, Analyst Hints Recovery
The Bitcoin (BTC) price has experienced significant fluctuations recently, dipping to $65,000 before rebounding above $66,000. Despite this volatility, market sentiment remains optimistic due to increased buying pressure, particularly on platforms like Huobi Global. Moreover, BTC is holding above a crucial support level, hinting at an impending recovery.
BTC Registers Significant Buying Pressure
Ali Martinez, a well-known crypto analyst, highlighted a notable surge in buying activity. In a recent post on X, Martinez wrote, “Someone is buying the Bitcoin dip! The BTC Taker Buy Sell Ratio on Huobi Global surged to 545!” The analyst added, “This spike in buy pressure indicates bullish sentiment, suggesting an upward BTC price movement could be on the horizon.”
The BTC Taker Buy Sell Ratio is a metric that compares the volume of buy orders (taker buy volume) to sell orders (taker sell volume) on an exchange. A ratio above 1 indicates that buying activity is surpassing selling activity, reflecting a bullish sentiment among traders.
Moreover, a ratio as high as 545 signifies an exceptionally strong buy pressure. Hence, it suggests that investors are seizing the opportunity to purchase Bitcoin at lower prices, anticipating a future price increase. This resurgence comes amid a broader market context shaped by various macroeconomic factors.
Another prominent analyst, Michaël van de Poppe, provided an in-depth analysis of the past week’s market movements. He noted that macroeconomic data has been favorable overall, contributing to the a rally in the gold and USD markets. However, it couldn’t reverse recent downturn in crypto markets.
Key economic indicators, such as the Consumer Price Index (CPI) and Producer Price Index (PPI), have been under close scrutiny. The CPI data released last Wednesday showed a lower-than-expected increase, which is typically seen as favorable for risk-on assets like cryptocurrencies.
“CPI Regular came out at 3.3%, while 3.4% was expected. Core CPI Regular scored 3.4%, while 3.5% was expected. All are positive for a potential rate cut or at least favor positivity towards the future on a potential rate cut,” Poppe noted. However, despite these seemingly positive signs, the Bitcoin and altcoins not yet reflected an upward trend.
Recovery Of BTC Price
Adding to the complexity, the Federal Reserve’s recent actions and statements have had a significant impact. Federal Reserve Chair Jerome Powell’s hawkish speech on Wednesday dampened market expectations for imminent rate cuts, despite economic data suggesting the need for such measures.
Despite the current market turbulence, there are signs of a potential recovery. Martinez emphasized the critical level Bitcoin needs to maintain to avoid a deeper correction. Martinez warned, “#Bitcoin needs to climb back above $66,254 quickly to avoid a potential correction down to $61,100!” Thus, Bitcoin’s recent bounce back above this level is a positive indicator, suggesting a possible stabilization.
Meanwhile, CryptoCon, another analyst, pointed to the importance of watching the 20-week Exponential Moving Average (EMA) as a key support level. “Sideways #Bitcoin price action and consolidation continues… The number to watch: $61,603 according to the most reliable healthy support, the 20-week EMA,” CryptoCon noted.
This support level has held strong, reinforcing a cautious optimism among market participants. CryptoCon advised to wait before making the next move as the market dynamics could shift anytime. Whilst, at press time, the Bitcoin price was down by 0.86% to $66,264.19 on Saturday, June 15.
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