Crypto’s Tide May Be Turning — Analysts Point Towards Bull Signals

• The Bitcoin Hash Ribbon indicates a bottom signal following a three-month miner capitulation period, typically associated with medium- to long-term price reversals.
• Recent macro factors, such as a 52.4 ISM Manufacturing PMI and shifting oil-driven liquidity dynamics, are boosting risk assets like crypto.
• Bitcoin surpassed $69,000, and altcoins showed positive MACD crossings, indicating a likely crypto rally and “alt season.”

Several market analysts claim that the crypto market could be entering a bullish phase, based on a mix of on-chain signals, macroeconomic data, and technical indicators on Monday.

On-chain analyst James Van Straten said the Bitcoin Hash Ribbon metric is an important signal that recently showed a bottom again. The indicator tracks miner capitulation by monitoring changes in hash rate. Analysts indicated that the most recent miner capitulation phase, which lasted about three months, was the second longest on record. They also said that the end of this phase has historically been a good time for prices to bottom out in the medium to long-term.

Supportive Macroeconomic Data 

The most recent ISM Manufacturing PMI was 52.4%, the second month in a row above 50, a sign of economic growth. In the past, crypto has performed well when growth picks up again, liquidity improves, and positions are reset. Some analysts said that PMI readings showing growth often occur at the start of rallies in riskier assets.

The sharp rise in oil prices linked to the U.S.–Iran conflict is making it hard for people who are short on the dollar in foreign exchange markets. Analysts say that changes in the macro economy caused by oil can change the flow of money and people's willingness to take risks. Geopolitical tensions usually hurt risk assets, but some see crypto's ability to remain strong amid the escalation as a sign of strength.

Bitcoin Nears $70,000 

At the time of writing, Bitcoin (BTC) was trading at $69,535.38, up over 5% in the last 24 hours, after hitting an intraday low of $65,149.05. On Stocktwits, retail sentiment around BTC remained in the ‘bullish’ territory, but chatter levels remained at ‘low’ over the past day. Analyst Michael van de Pope said that keeping higher lows and holding key levels makes it more likely that the price will move toward the $75,000 to $80,000 range.

Altcoins also exhibit technical signs. Market watchers noted that some alt indices have recorded their first bullish MACD crossover in a few years. This is a sign that "alt season" cycles are about to start.

Read also: Nasdaq Eyes ‘Yes-Or-No’ Contracts On Major Indexes, Steps Into Prediction Market

For updates and corrections, email newsroom[at]stocktwits[dot]com

Share

·

Add us on