Bitcoin price poised for a rally as momentum indicators show bullish divergence

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• 
  Bitcoin
  spot
  ETFs
  received
  the
  second
  consecutive
  day
  of
  inflows
  this
  week
  on
  Tuesday.
• 
  On
  June
  5
  and
  6,
  35,486
  BTC
  outflowed
  from
  BitMEX,
  marking
  the
  second-largest
  BTC
  outflow
  in
  the
  exchange.
• 
  Despite
  FUD
  from
  Mt.
  Gox
  and
  the
  German
  government,
  on-chain
  data
  shows
  investors
  quietly
  accumulating
  BTC.
• 
  Technical
  analysis
  shows
  that
  BTC
  has
  formed
  a
  bullish
  divergence
  on
  a
  momentum
  indicator.

Bitcoin
(BTC)
has
encountered
resistance
near
the
$58,375
weekly
level
during
the
past
few
days,
trying
to
break
and
hovering
just
above
it
at
$58,865
at
the
time
of
writing
on
Wednesday.
Concurrently,
on-chain
data
reveals
quiet
BTC
accumulation,
alongside
a
notable
outflow
of
35,486
BTC
from
exchanges
on
June
5
and
6,
marking
BitMEX’s
second-largest
outflow
in
history.
In
addition,
Bitcoin
spot
ETFs
received
$216.4
million
in
inflows
on
Tuesday,
marking
the
second
consecutive
day
of
positive
netflows
this
week.
Technical
analysis
also
indicates
a
bullish
divergence
on
a
momentum
indicator,
suggesting
a
potential
rally
ahead.

Daily
digest
market
movers:
Bitcoin
has
recorded
the
second-largest
Bitcoin
outflow
in
BitMEX
history

• According
  to
  on-chain
  market
  intelligence
  and
  analytics
  platform
  CryptoQuant,
  Bitcoin
  Exchange
  Netflow
  data
  from
  BitMEX
  has
  recorded
  the
  second-largest
  Bitcoin
  outflow
  in
  history.
  Historically,
  the
  Exchange
  Netflow
  indicator
  on
  BitMEX
  has
  shown
  a
  strong
  inverse
  correlation
  with
  Bitcoin
  price
  movements.
• When
  this
  indicator
  turns
  highly
  negative,
  indicating
  significant
  BTC
  outflows
  from
  exchanges,
  Bitcoin’s
  price
  rises.
  Large
  BTC
  outflows
  from
  BitMEX
  suggest
  that
  major
  investors
  withdraw
  their
  holdings,
  possibly
  for
  cold
  storage
  or
  strategic
  sales
  on
  other
  platforms.
  This
  behavior
  reduces
  immediate
  selling
  pressure
  on
  the
  exchange,
  stabilizing
  or
  potentially
  increasing
  Bitcoin’s
  price.
• Recently,
  an
  outflow
  of
  35,486
  BTC
  occurred,
  marking
  the
  second-largest
  BTC
  outflow
  in
  BitMEX’s
  history.

Bitcoin
Exchange
Netflow
(Total)
–
BitMex
chart

• On
  Tuesday,
  US
  spot
  Bitcoin
  ETFs
  recorded
  their
  second
  consecutive
  day
  of
  inflows
  this
  week
  of
  $216.4
  million.
  This
  surge
  indicates
  increasing
  investor
  confidence,
  suggesting
  a
  potential
  short-term
  uptick
  in
  Bitcoin’s
  price.
  Monitoring
  net
  inflow
  data
  from
  these
  ETFs
  is
  vital
  for
  assessing
  investor
  sentiment
  and
  comprehending
  market
  trends.
  Together,
  the
  11
  US
  spot
  Bitcoin
  ETFs
  presently
  hold
  reserves
  amounting
  to
  $49.14
  billion
  in
  Bitcoin.

Bitcoin
Spot
ETF
Net
Inflow
chart

• Additionally,
  data
  from
  CryptoQuant
  reveals
  that
  amid
  the
  FUD
  (Fear,
  Uncertainty,
  Doubt)
  triggered
  by
  Mt.
  Gox’s
  and
  the
  German
  government’s
  fund
  transfers
  on
  exchanges
  over
  the
  past
  weeks,
  certain
  investors
  are
  discreetly
  accumulating
  BTC,
  as
  shown
  in
  the
  chart
  below.

Bitcoin
Accumulation
chart

• Coinglass
  Bitcoin
  Long/Short
  Ratio
  provides
  insight
  into
  market
  sentiment
  among
  traders
  and
  investors
  regarding
  Bitcoin’s
  price
  direction.
  A
  high
  long/short
  ratio
  typically
  suggests
  bullish
  sentiment,
  indicating
  that
  more
  traders
  are
  betting
  on
  increasing
  Bitcoin’s
  price.
  Conversely,
  a
  low
  ratio
  may
  indicate
  bearish
  sentiment,
  suggesting
  more
  traders
  expect
  Bitcoin’s
  price
  to
  decrease.
• In
  BTC’s
  case,
  the
  long-to-short
  ratio
  was
  1.081,
  meaning
  there
  are
  1.081
  times
  as
  many
  long
  positions
  as
  short
  positions,
  further
  bolstering
  BTC’s
  bullish
  outlook.

Bitcoin
Long/Short
Ratio
chart

Technical
analysis:
BTC
momentum
indicators
show
bullish
divergence

Bitcoin
price
has
faced
resistance
near
the
weekly
level
of
$58,375
over
the
last
four
days.
BTC/USDT
is
testing
that
level
and
hovers
just
above
$58,865,
marking
a
1.3%
increase
on
Wednesday.

Additionally,
the
formation
of
a
lower
low
in
the
daily
chart
on
July
5
contrasts
with
the
Relative
Strength
Index’s
(RSI)
higher
high
during
the
same
period.
This
development
is
termed
a
bullish
divergence
and
often
leads
to
the
reversal
of
the
trend
or
a
short-term
rally.

If
BTC’s
daily

candlestick
closes
above
the
$58,375
weekly
resistance
level,
it
could
rise
9%
to
revisit
the
daily
resistance
at
$63,956.

BTC/USDT
daily
chart

On
the
other
hand,
if
BTC
closes
below
the
$52,266
daily
support
level
and
forms
a
lower
low
in
the
daily
time
frame,
it
could
indicate
that
bearish
sentiment
persists.
Such
a
development
may
trigger
a
4%
decline
in
Bitcoin’s
price
to
revisit
its
daily
low
of
$50,521
from
February
23.

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