- The price of Bitcoin has fallen by more than 4% in the past 24 hours.
- Most market indicators and benchmarks pointed to a further decline in prices.
Bitcoin [BTC] has struggled to turn bullish in recent days as it continued to trade below $67,000.
However, the entire trend could change soon as a key indicator hinted at a possible price surge that could see the king of cryptos reach $86,000 in the coming weeks or months.
Bitcoin’s path to $86,000
The bears dominated this past week, causing the prices of most cryptos to fall, and BTC was no exception. According to CoinMarketCapBTC witnessed a major price correction on June 6.
The price of the coin had fallen by more than 4% in the past seven days. At the time of writing, BTC was trading at $66,344 with a market cap of over $1.3 trillion.
However, Ali, a popular crypto analyst, recently posted one tweet highlighting a fact that gave hope for a price increase. According to the tweet, the mining cost of BTC was $86,668.
Taking historical trends into account, BTC could soon start a bull rally as its price has always risen above the average mining cost.
AMBCrypto then analyzed Glassnode’s data to find out how miners behaved while the BTC mining cost was $86,000. We found out they are planning to sell.
This was evident from the huge drop in the miners’ net position change, which showed that the miners did not have confidence in BTC and therefore chose to sell their holdings.
The balance of miners also showed a decline in recent weeks.
Source: Glassnode
Will BTC Remain Bearish?
As miners put selling pressure on BTC, AMBCrypto planned to look at other data sets to determine whether BTC would remain bearish.
AMBCrypto’s analysis of CryptoQuant facts revealed that the net deposits of BTC on the exchanges were high compared to the average of the past seven days.
Coinbase Premium from the king of cryptos was also in the red, meaning selling sentiment was dominant among US investors. Furthermore, Bitcoin’s NVT ratio recorded a sharp increase on June 15.
A rise in the measure means an asset is overvalued, indicating a possible price correction.
Source: Glassnode
Things looked even worse as most market indicators looked bearish. For example, the MACD showed a bearish advantage in the market.
The Chaikin Money Flow (CMF) registered a decline and remained well below the neutral line. BTC’s Relative Strength Index (RSI) was also below the neutral line.
Read Bitcoins [BTC] Price prediction 2024-25
These indicators pointed to a further decline in prices.
Nevertheless, the price of BTC had reached the lower limit of the Bollinger Bands. When that happens, it signals a northward price recovery in the coming days.
Source: TradingView