Bitcoin
is
plugging
the
bleed
of
last
week,
stabilizing
at
spot
rates,
but
still
stuck
within
a
bearish
formation.
Unless
there
is
a
conclusive
close,
ideally
above
$60,000,
sellers
will
still
dominate
price
action
in
the
short
to
medium
term.

Is
Bitcoin
Preparing
To
Race
Higher?

Amid
this
state
of
affairs,
especially
after
last
week’s
sharp
dump
that
pushed
BTC
to
as
low
as
$53,500,
there
is
optimism.
One
trader
thinks
Bitcoin
is
preparing
to
bounce
higher,
as
the
Puell
Multiple
indicator
hints.
The
tool
is
crucial
to
gauge
miner
profitability
at
all
price
points,
determining
whether
it
is
over
or
under-valued.

 

Citing
CryptoQuant

data,
the
analyst
is
convinced
the
Bitcoin
market
is
bottoming,
and
last
week’s
crash
was
a
climactic
end
of
the
June
leg
down.
Through
the
Puell
Multiple
indicator,
users
can
project
whether
a
correction
is
ending
or
just
beginning.

Historically,
when
the
indicator
falls,
it
could
be
a
good
signal,
especially
for
traders
timing
price
bottoms
in
a
bear
market.
With
bottoms,
picking
out
the
beginning
of
a
bull
cycle
can
be
easy.

The
Puell
Multiple
indicator
is
falling,
following
the
same
script
as
seen
in
2016
and
2020
before
prices
erupted.
This
formation
suggests
that
the
current
leg
down,
which
has
forced
hundreds
of
millions
of
long
liquidations,
is
ending.
Even
so,
whether
the
bull
run
is
in
its
early
stage
remains
to
be
seen.

So
far,
Bitcoin
is
stable,
adding
7%
from
July
2024
lows.
Even
though
there
is
hope,
the
break
below
May
and
June
2024
lows
last
week
mean
bears
are
in
control.

 

For
the
uptrend
to
resume,
and
as
mentioned
earlier,
bulls
must
close
above
$60,000.
However,
for
conservative
traders,
a
conclusive
close
above
$66,000
and
$72,000
could
signal
a
major
shift
in
trend.
In
that
event,
Bitcoin
could
retest
and
even
break
$73,800.  

USDT
Liquidity
Rising
But
BTC
Supply
Spike
Deflating
Bulls

Confidence
remains
high
for
now.
One
analyst

notes
that
the
USDT
liquidity
is
rising
in
early
Q3
2024.
Usually,
whenever
stablecoin
liquidity
rises,
it
could
mean
interest
in
riskier
assets
like
BTC
and
crypto
is
on
the
rise.

The
failure
of
prices
to
rise
immediately
could
be
due
to
the
spike
in
supply
as
the
German
government
unloads.
Once
this
overhang
is
absorbed,
the
uptrend
will
resume.

The
good
news
for
bulls
is
that
spot
Bitcoin
exchange-traded
fund
(ETF)
issuers
have
been
buying
as
Germany
offloads.
As
of
July
8,
SosoValue
data

 

shows

that
all
spot
ETF
issuers
added
$294
million
worth
of
BTC,
with
BlackRock
leading
the
pack.

Feature
image
from
Canva,
chart
from
TradingView

Go to Source
Author: Dalmas Ngetich

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