Bullish Signals Propel Bitcoin (BTC) to 39-Day High Amid Market Resilience

Bitcoin
(BTC)
has
shown
remarkable
resilience,
hitting
a
39-day
high
of
$68,560,
rebounding
over
29
percent
from
the
local
low
on
July
5th,
according
to
Bitfinex
Alpha.
This
surge
was
marked
by
five
consecutive
green
daily
closes
from
July
12th
to
16th,
indicating
strong
bullish
momentum.

Market
Resilience
Amid
Sell-Side
Pressure

One
of
the
key
events
impacting
the
market
was
Germany’s
Bundeskriminalamt’s
liquidation
of
over
48,000
BTC,
which
created
substantial
sell-side
pressure.
The
market,
however,
absorbed
this
influx,
showing
resilience
and
renewed
demand.
The
exhaustion
of
sell-side
pressure
from
both
the
German
government’s
sale
and
miners
has
allowed
for
positive
price
action
and
recovery.
The
Miner
Sustainability
metric
indicates
that
miners
are
now
fairly
paid,
marking
their
return
to
profitability
for
the
first
time
in
a
month,
suggesting
the
phase
of
upgrading
machinery
is
nearing
its
end.

Positive
ETF
Inflows

ETF
inflows
have
also
been
positive,
with
almost
$1.2
billion
recorded
last
week,
marking
the
first
positive
interest
since
early
June.
This
rise
in
inflows
is
attributed
to
the
price
exceeding
the
average
inflow
cost
basis
of
ETF
holders,
which
is
$58,200,
breathing
new
confidence
into
the
market.

Orderflow
Metrics
and
Accumulation

Orderflow
metrics
have
contributed
to
the
bullish
sentiment.
The
spot
Cumulative
Volume
Delta
metric,
which
measures
the
net
difference
between
market
buying
and
selling
volumes
on
centralized
exchanges,
has
reflected
a
shift
towards
net-buy-side
activity
for
the
first
time
since
early
March.
Additionally,
the
Bitcoin
Exchange
Reserve
metric
shows
a
rapid
decrease
in
BTC
reserves
held
in
exchange
wallets,
suggesting
that
large
investors
have
been
buying
the
dip
and
moving
their
assets
off
exchanges,
indicating
accumulation
and
potential
supply
squeeze.

Short-Term
Holder
Dynamics

The
cost
basis
for
short-term
holders
(STH)
has
also
seen
a
rise,
with
the
realised
price
currently
at
$65,176.
This
indicates
a
resurgence
in
buying
interest
and
confidence
among
short-term
holders.
The
Short-Term
Holder
Spent
Output
Profit
Ratio
(STH
SOPR)
metric,
which
determines
whether
short-term
holders
realise
profits
or
losses,
is
moving
back
towards
equilibrium,
suggesting
that
capitulation
from
this
cohort
might
be
over.

Economic
Factors
and
Regulatory
Advancements

In
the
broader
economic
landscape,
US
retail
sales
figures
have
shown
a
significant
slowdown
in
inflation,
positively
impacting
consumer
spending.
However,
the
housing
market
has
seen
a
downturn
due
to
high
mortgage
rates
and
a
shortage
of
affordable
homes.
Despite
these
challenges,
the
manufacturing
industry
has
demonstrated
resilience,
with
factory
production
exceeding
expectations.

Additionally,
the
US
Leading
Economic
Index
continued
to
contract
in
June,
but
the
rate
of
contraction
has
slowed,
indicating
a
less
negative
long-term
growth
outlook.
In
the
regulatory
sphere,
the
approval
of
Spot
Ethereum
ETFs
from
Fidelity,
VanEck,
and
others
by
the
US
SEC
marks
a
significant
development.
These
ETFs
will
begin
trading
on
July
23,
2024.
In
Hong
Kong,
stablecoin
sandbox
participants
are
facing
new
regulatory
frameworks,
and
South
Korea
has
enacted
the
Virtual
Asset
User
Protection
Act,
mandating
stringent
security
measures
for
exchanges.

For
further
insights,
visit
the
original
report
by

Bitfinex
Alpha.

Image
source:
Shutterstock