Has Bitcoin’s Price Downturn Ended? Signs of Investor Stabilization Suggest Possible Rebound

During Sunday’s trading, the Bitcoin value nudged up by 0.9% reaching $60,052. Nonetheless, Bitcoin’s valuation has been hovering near this notable threshold for a fortnight, and the minimal fluctuations over the weekend offer no clarity on its stability. The question remains: Will the recent uptrend persist, or shall we witness a seller-led correction extending further?

Positive Indications for Bitcoin’s Price Recovery Amidst Flag Pattern Configuration

Bitcoin’s price trajectory over the past two weeks has seen an uptick, moving from $49,000 to $60,052 – a substantial 22% growth. This shift corresponded with its market capitalization escalating to $1.182 billion. Surging past the 38.2% Fibonacci retracement level, the price action suggests an optimistic correction revitalizing the bullish momentum.

Daily chart inspections reveal the emergence of a bullish flag pattern. Characterized by a pair of downward sloping trend lines, this pattern typically forecasts tempotemporary pause in a counter-trend before a powerful rally ensues.

Adhering to this pattern’s implications, Bitcoin’s price could surge another 14.6% to confront the upper flag line at $68,714. Successfully breaching this level would solidify the completion of the consolidation phase.

An ascent above the 200-day Exponential Moving Average further tilts the overarching trend in favor of the bulls.

BTC Market Susceptible to Bottoming as NRPL Ratio Turns Negative

According to Cryptoquant, the NRPL Ratio, reflecting the Bitcoin network’s balance of realized profits and losses, recently dipped into the negative. This occurrence historically points to a possible market bottom as it indicates a predominance of losses, often following sell-offs by less resolute investors.

The Bitcoin price rebound from $56,000 last Thursday coincided with the NRPL Ratio plunging to -152,121,989, suggesting that the scales tipped in favor of losses. Such dynamics may signify easing of selling pressures, thereby priming the market for fresh accumulation, potentially sparking an upwards breakout.

This typical convergence of increased losses over profits commonly marks the end of a market downturn, signaling a transition towards a potential rally.

On the flip side, if Bitcoin falters below the 200-day EMA, this could usher in a stronger correction, and sinking beneath the flag pattern’s support would overturn the bullish narrative and potentially thrust the market value beneath $50,000.

Disclaimer: The content herein may reflect the personal opinion of the author. Carry out your market due diligence before investing in cryptocurrencies. Neither the author nor the publication assumes responsibility for personal financial loss stemming from investment decisions.