Bitcoin investors are buying in the dip sparking speculation of an imminent breakout
In the face of the challenge to maintain its price above the $65,000 support level, Bitcoin (BTC) is showing signs of hope as on-chain data suggests a positive outlook for the cryptocurrency. According to data from CryptoQuant, shared by analyst Ali Martinez on June 15, there is a noticeable increase in Bitcoin accumulation by investors following a recent dip in the market.
The Taker Buy Sell Ratio on the HTX cryptocurrency exchange has surged to 545, indicating a strong buy pressure. This surge in the metric is often seen as a bullish signal, hinting at a potential upward price movement for Bitcoin.
Martinez presented a chart that illustrates the Bitcoin price alongside the Taker Buy Sell Ratio over the past week. Despite minor fluctuations, Bitcoin’s price has shown a downward trend from around $70,000 to slightly above $66,000. Significant spikes in the Taker Buy Sell Ratio on June 9 and June 15 suggest a positive sentiment among investors, with the ratio reaching 545.857 on the latter date.
The surge in the Taker Buy Sell Ratio historically precedes price increases, indicating that investors may be accumulating Bitcoin in anticipation of a price recovery or breakout. A potential Bitcoin rally could dispel concerns of a looming crypto downturn, especially as the digital asset has been underperforming compared to other asset classes in the second quarter of 2024.
Uncertainty still lingers over Bitcoin’s future trajectory, with the market divided on whether bears or bulls will dominate. Analyst CryptoCon highlighted the importance of monitoring the 20-week exponential moving average (EMA) at $61,603 as a crucial anchor for the next bullish movement.
As of press time, Bitcoin was trading at $66,200, experiencing a correction of nearly 1% in the last 24 hours and a weekly decline of almost 5%. While buying pressure hints at a potential breakout, technical analysis leans towards a bearish sentiment dominating the crypto market. Breaking the immediate resistance at $67,000 is essential for Bitcoin to pave the way for a breakout, as losing the $65,000 support level could spell further trouble for the cryptocurrency.