Bitcoin briefly tumbled below $50,000 earlier this week as the market saw the sharpest correction since the FTX crisis. The subsequent recovery, though, pushed the asset’s price above $57,000.
Despite the chaos in the broader market, bitcoin’s technical charts show a bullish flag, while on-chain data reveals rising buying pressure, reinforcing the bullish outlook.
Strong Bullish Forecast
According to the latest post by CryptoQuant, a promising bullish signal for BTC has emerged with the crypto asset forming an ascending flag pattern on technical charts since March this year. This classic pattern often precedes significant upward movements, suggesting that bitcoin might experience a breakout in the coming months.
Supporting this technical analysis, CryptoQuant’s Onchain NetFlow metric revealed a notable increase in buying pressure, further highlighting the growing demand for bitcoin. This alignment between the technical pattern and on-chain metrics reinforces the bullish outlook, indicating a strong potential for future price gains.
There has also been a significant uptick in whale transactions on August 5th and 6th, as highlighted by Santiment. The figure appears to have reached levels not seen since the first week of April. This surge in activity is linked to a rapid accumulation by wallets holding between 10 and 1,000 BTC, which coincided with the recent price dip that briefly pushed bitcoin below $50,000.
The increased whale transactions during this period suggest a strategic accumulation phase, with large holders seizing the opportunity to buy bitcoin at lower prices.
Volatility Incoming?
IntoTheBlock’s latest tweet points out that Bitcoin’s 30-day volatility has reached its highest level since March, signaling a period of increased market uncertainty. This surge in volatility often signals significant trend shifts, suggesting that bitcoin could experience substantial price movements in the near future.
“Bitcoin’s 30-day volatility hit its highest point since March of this year. This rise in volatility indicates potential trend shifts and heightened market uncertainty.”
