Bitcoin price set for a surge with bullish divergence on momentum indicators
Bitcoin spot ETFs saw a surge in inflows for the second consecutive day this week, with $216.4 million flowing in on Tuesday. On June 5 and 6, a significant outflow of 35,486 BTC from BitMEX, the second-largest in the exchange’s history, was recorded. Despite concerns stemming from Mt. Gox and the German government, on-chain data indicates that investors are quietly accumulating BTC.
BTC has been facing resistance near the $58,375 weekly level recently, hovering just above it at $58,865. This comes as on-chain data shows a quiet accumulation of BTC and a substantial outflow from exchanges. The positive netflows into Bitcoin spot ETFs continued on Tuesday, further boosting investor confidence and potentially signaling a short-term price increase. Technical analysis also points to a bullish divergence on a momentum indicator, hinting at a possible upcoming rally.
The Exchange Netflow data from BitMEX revealed the second-largest Bitcoin outflow in history, with 35,486 BTC leaving the exchange. This outflow is often associated with a rise in Bitcoin’s price, as major investors withdrawing their holdings can reduce immediate selling pressure on the exchange, stabilizing or even increasing the price.
The Long/Short Ratio for Bitcoin currently stands at 1.081, indicating a bullish sentiment among traders and investors. A higher long/short ratio suggests that more traders are betting on Bitcoin’s price increase, further supporting the positive outlook for BTC.
In technical analysis, BTC is testing the $58,375 weekly resistance level, with potential for a 9% increase if it closes above this level. Conversely, a close below the $52,266 daily support level could signal a 4% decline in Bitcoin’s price.
Overall, despite the challenges posed by recent events, the data suggests a positive sentiment among investors, with potential for a price rally in the near future. The ongoing accumulation of BTC and the inflows into Bitcoin spot ETFs indicate growing confidence in the cryptocurrency market.
