Bitcoin Returns to $67k. Indicators Hints at More Upsides
Bitcoin is picking up momentum and returning to levels it lost last month. At the time of writing, it is experiencing notable upside.
The uptick is due to a momentum build-up it had a few days ago. However, fundamentals played a huge role in the most recent trend.
The most significant of the news that made the rounds at the time was Republican Presidential candidate Donald Trump surviving an assassination attempt. Due to his stance on crypto, the space celebrated with several assets printing green candles.
The event also increased the rating and probability of the candidate winning the upcoming November elections. Since the event took place, the crypto market has seen significant positive changes in trajectory, and the apex coin is on the frontline.
It is also worth noting that a notable fuel to the downtrend ran out of gas. Germany ran out of BTC last week, halting the massive dump the market saw.
Bitcoin On-chain Data is Mixed
In response, on-chain data are also positive. For example, exchange reserves are gradually decreasing, which is good for the cryptocurrency. This phenomenon indicates a notable decrease in selling pressure. However, the NetFlow, which is the difference between the assets coming into exchanges and the outflow is negative.
While the netflow may not look threatening, it may indicate an impending downtrend. The metric’s negative value means more traders are moving their assets from cold storage to exchanges and gearing up to sell. Nonetheless, reserves reduced by over 2% in the last seven days.
The net unrealized profit and loss is also printing bearish signals at the time of writing. Almost 70% of Bitcoin holders are in profit at this time. Coupled with the exchange netflows, it may indicate an impending retracement.
Amidst the readings from both metrics, the data from Coinbase premium indicates a possible continuation of the uptrend. It has significantly improved over the last 24 hours, so US traders are getting more bullish and accumulating.
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