In the Bitcoin price consolidation below 35 thousand dollars, the buyers could not stay above 35 thousand dollars yesterday, and the week was entered mainly as a seller. Bitcoin recorded a daily high of $35,939 before heading back below $34,000. BTC price has moved in a channel between $30,000 and $40,000 since the overall market plunge in May that saw nearly half of the crypto market valuation wiped out.
The latest data from Santiment shows that the Bitcoin stock market flow rate has reached the lowest level since January and is at a 6-month low.
A drop in currency flow is considered a bullish sign as it indicates that traders expect the Bitcoin price to move upwards.
Bitcoin lost about 50% of its value during the May market sell-off, approaching $30,000, down from its April ATH of $64,689. While the bearish trend is more dominant in the current market, analysts estimate that we have not yet reached the top of the market.
Critical resistance to be overcome for Bitcoin (BTC) price rise: $36,000
The falling currency influx points to two key sentiments for bitcoin price, first, reducing the risks of the second week of May such as selling, and second, the market being less active and calm. Besides the decrease in foreign exchange flow, BTC trading volume is also at low levels.
The analyst suggests that Bitcoin price must seize its position above $36,000 before seeing any uptrend. The biggest cryptocurrency has failed to maintain gains above $35,000 in the last two events over the past few weeks. A move above $36,000 will help BTC break out of the current price consolidation range and possibly resume its bull run.
Bitcoin price also gave a rare buy signal recently as the Puell Multiple fell below 0.3 points. The combination of these factors suggests that the Bitcoin price is poised to break through its current recession.