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Bitcoin price consolidation under $35k entered a new week after failing to hold onto its gains above $35K yesterday. The top cryptocurrency recorded a daily high of $35,939 before retracing to sub-$34k levels again. The price of the top cryptocurrency has moved in the range of $30k-$40k since the market mayhem in May that saw nearly half of the crypto market valuation get wiped off.
Recent data from Santiment analytics shows the Bitcoin exchange flow ratio has reached the lowest since January, hitting a new 6-month low.
Source: Santiment
A decline in exchange flow is considered a bullish sign as it indicates traders are anticipating Bitcoin price to move upwards.
Bitcoin lost nearly 50% of its valuation during the May market sell-off reaching near $30K from its April ATH of $64,689. While bearish sentiments are more dominating in the current market, analysts predict we have not reached the market top yet.
Bitcoin Price Needs to Conquer $36K Before a Move Up
The declining exchange flow indicates two prime sentiments for bitcoin price, first, it reduces risks of May second week like sell-off, and second, the market is less active and drying out. Apart from the decline in exchange flow, the BTC trading volume has dried down as well.
Source: Crytpoquant
Analyst suggests Bitcoin price would need to conquer its position above $36K before seeing any uptrend. The top cryptocurrency has failed to hold onto its gains above $35K on the past two occasions in the last couple of weeks. A move above $36K would help the top cryptocurrency to break out of the current price consolidation range and possibly continue its bull run again.
Bitcoin price recently also flashed a rare buy signal as the Puell Multiple dropped below 0.3 marks. These factors combined suggest that Bitcoin price is gearing up to break out of its current slumber.
The post Bitcoin Exchange Supply Ratio At 6-month Low, What Does It Mean for Bitcoin Price? appeared first on Coingape.
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