Three factors indicate that Bitcoin's current decline has bottomed out

According to Bitpush data, Bitcoin, the cryptocurrency with the largest market value, has continued to fall recently and has now fallen to around US$10,000.

However, the current market sentiment remains optimistic, and investors' "buying on dips" below $10,000 has provided strong support for the price of Bitcoin. Some market signals also suggest that this round of Bitcoin decline may have bottomed out.

One of the important factors is that the current selling pressure in the market has disappeared. Crypto analyst IncomeShark shared a chart of Bitcoin balances over the past few months on Twitter.

The chart shows that the massive sell-off by crypto miners that caused a sharp drop in the crypto market two weeks ago has ended, and the rate at which they are selling Bitcoin has slowed down significantly. This means that a rebound is coming.

The second influencing factor is the traditional stock market. Although the correlation between the crypto market and the stock market has declined in recent weeks, the overall trend shows that there is still a considerable correlation between the two. The previous decline in Bitcoin prices was also affected by the traditional market.

Crypto analysis company Glassnode also wrote in its latest weekly report, "As assets mature, Bitcoin has consistently shown correlation with traditional financial markets. A decline in the S&P and the overall stock market could bring down Bitcoin and other cryptocurrency assets."

Currently, U.S. stock index futures are on an upward trend, and the rise in stock prices will further push up the price of Bitcoin.

Another important influencing factor is that Bitcoin's fundamentals remain strong. In Bloomberg's "August Cryptocurrency Outlook" published last week, analyst Mike McGlone believes that in the long run, Bitcoin still has the potential to continue to rise.

Data from Glassnode shows that “liquidity for the cryptocurrency has increased as Bitcoin flows into crypto exchanges.”

Analyst Willy Woo also said that "Bitcoin's on-chain transaction volume is bullish and may have bottomed out now."

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AuthorLiang Che

This article comes from Bitpush.News. Reprinting must indicate the source.