The leading on-chain analytics firm Glassnode says there is a fair chance that Bitcoin will move to the upside soon and, it is sonner than most traders anticipate.
Jan Happel and Yann Allemann, creators of Glassnode say, though the price action of Bitcoin looks weak at the moment, an unforeseen amendment to Fed policy can set a bullish track for Bitcoin.
“In a volatile environment where bad news is perceived as good news, Bitcoin has been compressed between $19,00-$21,000 while Swissblock’s Bitcoin Risk Signal reflected an easing risk. Despite a weak price action in June, there is an impending pronounced move.
The market is indecisive as investors digest incoming data, eagerly await the FOMC meeting, and anticipate the Fed’s policy. Will the Fed proceed with an aggressive rate hike in July and September? Or has the economy (aggregate demand) shown enough weakness to persuade the Fed to change its course of action?”
They further elaborated stable supply ratio (SSR) metric indicates that the current stablecoin has more buying power to purchase Bitcoin. In this current state, SSR indicates, that the asset is highly oversold.
“Bitcoin is holding the $20,000 level. An increase in stablecoin market cap share suggested an oversold BTC on a daily timeframe
Significant liquidity is sitting on the sidelines. It is a matter of when (FOMC) and not if capital is redeployed.”
The Bitcoin is hovering around the 21,000 level at the time of the writing.
