While investors are trying to cope with the downward trend that has been going on for more than a month, Bitcoin is trying to withstand the German government's sales.
At this point, while analysts generally predict that the bottom may have come in Bitcoin or may come as soon as possible, an assessment came from Singapore-based crypto company QCP Capital.
Analysts stated that the market initially faltered in the face of Mt.Gox and the German government's Bitcoin sales, but then quickly recovered, listing the bullish signals.
At this point, he showed spot Bitcoin ETF entries as the first signal.
Stating that institutional investors increased their dip purchases, QCP analysts said that this situation was supported by strong spot BTC ETF inflows.
Analysts, who showed the purchase of BTC from exchanges in response to the sales of the German government as the second bullish signal, stated that less Bitcoin entered the market.
Finally, analysts stated that Bitcoin and Ethereum made higher bottoms this week after the sharp declines last week, and that the bottoms were purchased aggressively, and that these purchases were a bullish signal.
“ We are seeing bullish signals in the market for the following reasons:
1. After the sales, the German government bought BTC from the exchanges. This shows that these BTCs did not enter the market.
2. Strong demand demonstrated by rapid dip buying, supported by ETF inflows of $295 million on July 8. ETFs hit a 21-day high.
3. Despite weak liquidity, BTC and ETH made higher lows this week and the dips were bought aggressively.
The market is highly responsive to supply movements, indicating speculative selling pressure rather than actual spot selling. “This may indicate that the market is over-positioned to the downside.”
Spot Ethereum ETF Could Be a Bullish Catalyst!
Finally, in addition to the bullish signals, analysts pointed out that Bitcoin and the market needed a catalyst and evaluated that this catalyst could be the final approval of the spot Ethereum ETF.
Analysts said approval news from ETH ETFs could increase liquidity and serve as a catalyst for a potential upside move.
“A catalyst for upside is needed. spot ETH ETF will begin trading around July 15. A positive buy could increase liquidity and potentially surprise the market with an upside move.”
*This is not investment advice.
