Bitcoin Trading at $66,400 with Positive On-Chain Signals

Over the past few days, Bitcoin (BTC) prices have been declining, hitting new lows daily. However, the cryptocurrency has now rebounded to $66,400. Despite the recent downturn, one metric suggests that prices might soon rise.

Bitcoin Buyers and Sellers

An analysis of the Bitcoin Buy-Sell Ratio on CryptoQuant reveals a recent positive trend. The chart indicates that by the end of the trading session on June 15, the ratio was trending below 1, signaling bearish sentiment. However, this metric has risen since the previous session.

A deeper analysis shows that it has surged on several exchanges, indicating a shift towards bullish sentiment as more buy orders are being placed than sell orders. At the time of writing, the BTC Taker Buy-Sell Ratio has climbed above 1. This signifies that buying pressure is surpassing selling pressure on most exchanges. This shift suggests that market sentiment is becoming more optimistic, which could soon lead to a price increase for BTC.

Capital Flow Dominates, Yet a Downside Remains

Bitcoin’s Exchange Netflow indicates active movement over the past few days. This suggests that more BTC is being sent to exchanges than being withdrawn from them.

While this initially seems like a bearish signal, further analysis reveals that inflows remain relatively low compared to outflows over the past few weeks. Despite the recent increase in BTC sent to exchanges, the overall trend of accumulation and withdrawal to private wallets remains strong, which could still support a bullish outlook for BTC.

Related: Long-Term Holders Purchase Significant Amounts of ETH

Bitcoin’s Downward Trend

A daily timeframe analysis of Bitcoin shows an overall decline over the past few days, with minor uptrends insufficient to stabilize it. At the time of writing, BTC is trading around $66,360 despite slight upward movements. Additionally, BTC’s support level is under significant pressure as the price heavily relies on it. The final support range is approximately $65,000, and Bitcoin is currently trading above this level.

Moreover, the Relative Strength Index (RSI) remains below the neutral line. At the time of writing, the RSI is around 45, indicating that BTC is in a bearish trend.