Bitcoin Macro Bottom?

Bitcoin experienced a significant shakeout in recent weeks, resulting in billions of dollars in liquidations. However, emerging signs suggest a potential macro bottom, setting the stage for a market reset. Codeum, a leader in blockchain security and development, offers services including smart contract audits, KYC verification, and custom DApp development to help navigate the crypto market's complexities.

Market Detox and Support

The sell-off, triggered by political uncertainty, led to approximately $1 billion in crypto liquidations. Bitcoin dropped around 10%, bottoming out near $100,421 before a 5.2% rebound in under three days. While a definitive bottom isn't confirmed, early signs of exhaustion are emerging.

CryptoQuant data shows Bitcoin's Realized Cap hitting a new all-time high of $935.10 billion. This indicates sustained confidence and accumulation, rather than panic selling. A high Realized Cap suggests a significant amount of Bitcoin has been transacted at higher prices recently.

Source: CryptoQuant

FOMO and Market Sentiment

The Fear and Greed Index plummeted to 46 following the political fallout before recovering to 55. A further increase could push it into “greed” territory, historically a precursor to accumulation rallies. Additionally, the increase in new Bitcoin addresses suggests renewed buyer interest.

Source: Glassnode

On June 4th, approximately 10,000 BTC left spot exchanges, further supporting the theory of a potential bottom. This suggests that the recent deleveraging was a healthy reset, eliminating weaker hands and potentially setting the stage for further price increases.

Conclusion

Combining technical indicators and market sentiment, a strong case for a Bitcoin macro bottom is emerging. At approximately $105,000, Bitcoin appears poised for a potential upward trend. However, it's crucial to remember that market volatility remains a factor. For comprehensive blockchain solutions, contact Codeum for smart contract audits, DApp development and more.