Key Points
- Bitcoin (BTC) has experienced a significant decline over the past month, but analysts remain optimistic.
- Current market indicators suggest long-term confidence and a potential rebound for Bitcoin.
Bitcoin, the leading cryptocurrency, has seen a consistent drop over the past 30 days. Despite this, the crypto has made some gains in the last 24 hours.
At the time of writing, Bitcoin was trading at $58,820, marking a 1.10% increase over the past day. Before this, the crypto had been on a downward trend, falling by 6.32% over the past week and 4.37% over the past month.
Market Sentiment
Despite the recent downturn, key stakeholders, including analysts, remain hopeful about Bitcoin’s future. CryptoQuant analyst Kripto Mevsimi, for instance, predicts a rebound due to the declining short-term Sharpe ratios.
Mevsimi’s analysis references the 2023 cycle, suggesting that the current short-term Sharpe ratio reflects the previous year’s cycle. In the previous cycle, a decline in the short-term Sharpe ratio was followed by a surge in Bitcoin prices.
What Bitcoin’s Charts Suggest
Other market indicators also suggest a positive outlook. For instance, Bitcoin’s Fund Flow Ratio has been declining over the past week, indicating that investors are opting to hold their assets rather than sell. This signals long-term confidence and anticipation of future price increases.
Furthermore, Bitcoin’s liquidation has decreased over the past three days. Long positions have fallen from $35.7 million to $3.4 million at the time of writing. This suggests investor confidence in long-term price increases.
Lastly, Bitcoin’s net unrealized profit was at 0.49, indicating that the prevailing market sentiment was optimistic. Therefore, if the current market sentiment continues, Bitcoin is well positioned to break past the stubborn resistance level around $60k and challenge the $64,752 resistance level.
