Bitcoin (BTC) Market Sentiment Plummets Amid Supply Overhang and Analyst Insights

  • Recent BTC downturn has dampened optimism regarding the continuation of the crypto bull run.
  • Analysts, however, believe that long-term market trends remain positive.
  • Significant BTC liquidations and market sentiment analyses indicate mixed outcomes.

Discover the latest developments in Bitcoin market sentiment and understand what analysts are forecasting for the crypto bull run.

Is the Crypto Bull Run Over?

Bitcoin (BTC) saw a notable decline on Monday, 25th June, dropping to $58.6K during intra-day trading as evident bearish sentiment took hold of the market. The trend was also mirrored in U.S. spot BTC ETFs, which witnessed their 7th consecutive day of outflows, amounting to $174.45 million.

The disheartening sentiment has been compounded by the potential influx of BTC from sources like Mt. Gox, German authorities, and BTC miners. On Monday alone, over 57,000 BTC, equivalent to $3.4 billion, were sold off.

Evaluating Market Conditions

Understanding BTC’s movement is crucial since it dictates the overarching tempo of the crypto bull run. Historical analyses of BTC’s Relative Strength Index (RSI) indicate that there might still be room for a bullish momentum.

TechDev_52, a prominent analyst on X, noted that the RSI channels, which have historically indicated market tops and bottoms, haven’t suggested a market top yet. This observation was further supported by charts showing that an RSI spike usually corresponds with market peaks.

Rekt Capital, another respected market analyst, pointed out that the recent BTC pullback is comparatively moderate by historical standards. He stated,

“The average retrace depth is -22%. The average retrace length is 42 days. This current pullback is -16% deep and 35 days long. This current retrace is not even an average one in depth nor length yet.”

Analyzing On-Chain Metrics

Moreover, on-chain data provide additional insights into BTC’s future prospects. The Market Value to Realized Value (MVRV) Z score, which helps determine long-term tops and bottoms, has yet to signal a peak. Historically, the crypto market has peaked when the MVRV Z score hits a red zone value of 6 or more.

Although the short-term outlook may seem bleak due to potential BTC influxes from entities like Mt. Gox, long-term analysis suggests there is room for continued bullish trends.

Conclusion

In summary, while the immediate market conditions for Bitcoin appear turbulent, several metrics and expert analyses imply that the long-term trajectory is still on an upward trend. Investors and market participants would be prudent to consider these factors when making informed decisions about the future of the crypto bull run.

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Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
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