Bitcoin (BTC) price experienced a bullish event on June 13, when the price dropped to $39252, but many analysts are still undecided whether the digital asset is ready to continue its trend.

As of today, the cryptocurrency market is still ahead and two months away from Bitcoin’s stable high at around $65,000. Market analysis by Delphi Digital revealed a “larger head and shoulder pattern” that could “cause more pain in the short term if BTC drops below $30,000.”

With that in mind, now is the time to review some important data to get a broader view of where the price of Bitcoin may be headed next.

Short-term holders suffer losses
The 50% price drop over the past two months may seem excessive to those unfamiliar with the volatility of the cryptocurrency market, but this is not surprising for long-term holders of coins who have seen numerous flaws on a larger scale over the past decades.

Bitcoin price drop from 52-week high. Source: Delphi Digital
As shown in the chart above, it is not uncommon for BTC to drop by 70% or more, especially after massive price increases, indicating that the potential for further pain remains a threat as the bulls flock to the $30,000 range. .

The rapid price drop left new and old bitcoin holders on the sidelines, leading to traders selling at a loss according to SOPR (Profit Resulting in Spend Ratio) data highlighted by crypto analyst filbfilb.

Bitcoin used a percentage of the profit. Source: Decentrader
Signs of a SOPR reset have appeared over the past couple of days, indicating that mid-term portfolios are now selling at a profit once again.

The Crypto Fear and Greed Index (CFGI) also reached its lowest level since March 2020 sales sparked by the Covid-19 pandemic.

BTC dips against the cryptocurrency fear and greed index. Source: Delphi Digital
The high level of fear most traders are currently experiencing is keeping many on the sidelines as fears of further losses remain a legitimate opportunity.

However, for speculative investors, low index scores are an indication that they are “greedy when others are afraid,” says Warren Buffett, and the chart above shows that buying in times of extreme fear is generally a good entry level.

Related: How a looming Bitcoin cross could be a controversial buy signal

Mood begins to recover
While it is true that the price of Bitcoin has fallen by more than $30,000 in the past two months, it is important to note that the amount that has fallen, as well as the current price, is close to double the previous high of 2017. .

On-chain analysis from Decentrader shows that an “oversold” signal was recently given, “indicating that Bitcoin may soon be ready to turn around and go upside down.”

The bullish signal is provided by the sentiment indicator of the active title. Source: Decentrader
The active title sentiment indicator compares the 28-day change in the price indicated by the orange line to the 28-day change in the active titles in the series, which is represented by the bar with gray lines.

The orange line moving up from the green dotted line in the active address change range is a bullish signal, and it happened on June 10 last year, which indicates the possibility of a market reversal.

According to Rekt Capital, a popular Twitter analyst, Bitcoin is still on its way to getting new work going.

For now, it might be best to take a break from staring at the charts and worrying about the path Bitcoin will take. The long-term outlook remains good as countries like El Salvador have started to choose BTC as their legal currency and more and more people are showing interest in the cryptocurrency.

Source: CoinTelegraph

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