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Bitcoin has been marking multiple weeks of consecutive red closes. This has been the case for the last two months when the leading cryptocurrency had seen 9 consecutive weeks of red closes. Unsurprisingly, this had pained a very bearish image for the digital asset. However, it seems the tide has begun to turn as bitcoin has now ended its streak. A break above $30,000 in the early hours of Monday put BTC in its first weekly close in more than two months.
Better Days Ahead For Bitcoin?
While the price of bitcoin has been in recovery, it does not exactly erase more than two months of bearish trends. This first green in a long line of reds does not automatically trigger a bull trend for the digital asset. What it does, however, is show that investor sentiment is starting to turn for the better. No doubt the sellers will continue to dominate the market for the better part of the next week but an uptick in positive inflows is expected from here.
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Bitcoin has not had a green weekly close since the month of March. Even before then, sentiment had turned for the worse. This continues into the new week as the Fear & Greed Index is currently sitting at 13, putting it in extreme fear. BTC’s rise above $32,000 last week had worked to help ease the fear in the market but negative sentiment had returned once more with the crash below $29,000.
BTC settles above $31,000 | Source: BTCUSD on TradingView.com
What is expected from here on out is shaky movements for BTC. The digital asset needs to secure a position above $35,000 for it to be considered back on another bull trend. However, multiple significant resistance points lie ahead for the cryptocurrency.
What Exchange Inflows Say
Bitcoin exchange inflows mirror the positive sentiment that is returning to the market. Data from Glassnode shows that for the last day, there have been $6.6 billion in BTC moving into exchanges while $7.9 billion has been moved out. This works out to a negative net flow of -$1.3 billion, signaling that more investors are moving towards accumulation instead of outright sell-offs.
Weekly On-Chain Exchange Flow #Bitcoin $BTC $6.6B in $7.9B out Net flow: -$1.3B#Ethereum $ETH $3.3B in $3.2B out Net flow: +$108.6M#Tether (ERC20) $USDT $3.4B in $4.2B out Net flow: -$781.3Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) June 6, 2022
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Bitcoin remains a long way off from its all-time high and indicators point to recovery to that ATH value being years away. Nevertheless, for the short-term, the price of bitcoin is poised to hold up against bears. Since the majority of BTC investors are still in profit, it is not expected that the sell-offs will die off anytime soon though. But it is nearing an exhaustion point.
Featured image from The Cryptonomist, chart from TradingView.com
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