Bitcoin’s short-term outlook presents promising bullish opportunities as indicated by several key metrics. Despite the ongoing negative 30-day MVRV ratio and an uptick in mean coin age suggesting widespread accumulation, the $55k liquidation cluster remains untested, with current resistance at $63.3k.
On-chain data from Santiment reveals a record accumulation by major Bitcoin stakeholders, amassing 16.17 million BTC. Bitcoin saw a robust recovery entering July, with prices climbing 4.5% since the previous Saturday, breaching $63,000. The cryptocurrency retested and successfully defended its support zone dating back to March 1st, maintaining recent price lows.
Presently, resistance persists around $63.3k, with technical indicators signaling no immediate bullish reversal on longer timeframes. However, shorter-term signals, including recent bearish sentiment and imbalances in the futures market, hint at potential targets for liquidation to the upside.
Bitcoin’s on-chain metrics highlight significant accumulation trends despite the negative 30-day MVRV ratio, reflecting short-term holders’ losses. Conversely, the rising mean coin age over six weeks suggests strong accumulation sentiment, indicating an undervalued asset and potentially triggering a Bitcoin rally.
Despite challenges indicated by the Network Value to Transactions Ratio (NVT), which suggests Bitcoin’s overvaluation relative to daily on-chain transaction volumes, positive signals from the MVRV ratio and mean coin age present compelling short-term buying opportunities.
The $55k liquidation cluster, though untested, underscored support near the $60k mark, with potential interest shifting to the $73k level if bullish momentum continues. However, challenges loom, including warnings from Julio Moreno of CryptoQuant on possible Bitcoin miner capitulation, hinting at a local price bottom. Furthermore, analyst Axel Adler notes increased Bitcoin sales absorbed primarily by crypto exchanges.
Santiment’s data underscores long-term bullish sentiment among major Bitcoin holders, reflected in their unprecedented accumulation. This confidence is crucial amidst hopes that increased buying power from Tether and USD Coin holders could catalyze the next crypto bull run, potentially unlocking substantial market gains.