The post Analysis Suggests BTC Is Poised for Short-Term Rebound after Overselling appeared on BitcoinEthereumNews.com.

Coinspeaker Analysis Suggests BTC Is Poised for Short-Term Rebound after Overselling Recent market indicators suggest that Bitcoin (BTC) may be on the verge of a short-term rebound following a period of significant overselling. An analysis of various market metrics points to a potential shift in momentum, though caution remains warranted. Weakening Downward Momentum According to XBTManager, a contributor and on-chain analyst at CryptoQuant, several key metrics and indicators suggest that Bitcoin could be nearing a bottom after a roughly 30% drop from its peak of $70,000. The Coinbase premium index, which reflects the difference between Bitcoin prices on Coinbase and other exchanges, has shown signs of weakening downward momentum. This shift suggests that demand may be starting to increase, potentially signaling an imminent reversal. However, the index indicates that while the bottom may be approaching, there could still be some further decline before a true rebound begins. Photo: CryptoQuant Current Market Conditions Spot CVD (Cumulative Volume Delta) data highlights persistent selling pressure, with Binance showing oversold conditions and Bitfinex slightly shifting toward buying. Despite this, overall selling trends dominate. The Coinbase index reflects a trend of slight selling but with an overall upward inclination, indicating mixed signals in the market. Perpetual contract selling pressure remains high, suggesting that the downward trend could persist unless we see significant strength in the market. However, open interest has decreased as many positions have closed, which could set the stage for a potential turnaround if buying strength returns. The true retail long ratio is currently at 72, exerting continued downward pressure on Bitcoin prices. This figure highlights that individual investors are holding more long positions compared to whales. The whale versus retail delta stands at -5, reflecting a larger commitment from retail investors. This disparity could indicate a potential shift in market dynamics if…

---

Filed under: News - @ August 5, 2024 4:20 pm