- Bitcoin’s mean coin age indicates a halt in its downtrend, suggesting that accumulation is underway despite a recent drop to $56.8k.
- Although signs of accumulation and demand are present, the consolidation period may not end soon.
- Bitcoin ETF inflows chart and the Grayscale Bitcoin ETF GBTC indicate that bulls are gaining strength.
Bitcoin’s mean coin age halts its downtrend, suggesting that accumulation is underway. Despite the recent drop to $56.8k, signs of accumulation and demand are present, indicating a potential bullish trend.
Bitcoin’s Short-term Bearish Bias
Despite the 4.6% increase in Bitcoin’s value over the past week and the positive signs from the Bitcoin ETF inflows chart and the Grayscale Bitcoin ETF GBTC, the short-term bias remains bearish. The technical structure of Bitcoin remains bearish, but on-chain metrics could provide insights into potential price movements.
Long and Short-term Outlook
Analyst Kripto Mevsimi points out that the recent correction has led to a decline in the Bitcoin supply in profit. If the metric falls below the threshold for optimism and pessimism, a deeper correction could be witnessed. However, if the metric stays above this line, market sentiment could remain positive, and a recovery could be expected.
Is it a good time to buy Bitcoin?
While the long-term bias of Bitcoin is bullish, the short-term bias is bearish, suggesting a possibility of a deeper correction. Metrics from Santiment indicate that Bitcoin is currently undervalued, but the 3-day weighted sentiment remains negative. The mean coin age metric has halted its previous downtrend, suggesting a potential buying opportunity. However, the price action suggests that bears currently have the upper hand.
Conclusion
Despite signs of accumulation and a bullish long-term bias, Bitcoin’s short-term outlook remains bearish. On-chain metrics suggest a potential buying opportunity, but the price action indicates that bears currently dominate the market. Investors should closely monitor these metrics and market trends before making a decision.
