Bitcoin BTC/USD is likely to see another bull run, according to some indicators.
What Happened: Bitcoin is likely to see another price surge soon, data shows.
One of the reasons is that the reserve risk indicator, which shows confidence and conviction of long-term holders, currently stands at 0.003, Glassnode data reveals.
A lower reserve risk implies high confidence, and at the time of mid-April all-time highs it was standing at 0.007.
While the current reserve risk indicator value is bullish, it is still on the fall and hasn’t bottomed out, which suggests that the price has not bottomed out yet either, and the downtrend is still happening.
What Else: Bitcoin's volatility also continues to drop, meaning that the downturn is losing momentum and taking smaller and smaller steps.
Today, Bitcoin's 30-day volatility is at 4.58%, a value not seen since March, before the coin rallied towards its all-time high.
While this is another bullish sign, low volatility also prevents sudden and major tide reversals.
Bitcoin’s MVRV Long/Short just dipped below 0% for the first time in 14 months on 10 July, which implies that both short-term and long-term traders are losing on their investments. This suggests that Bitcoin investors now see a buying opportunity.
Those indicators seemingly suggest that an immediate Bitcoin bull run probably won't take place, but a trend reversal is likely to take place soon.
Price Action: According to CoinMarketCap data, Bitcoin is currently trading at $33,250 after losing 2.33% of its value over the last 24 hours.
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