A bullish split on price charts chances of a September rate cut, and a growing M2 supply might kick off the Bitcoin bull market again. Bitcoin’s price swings to five-month bottom & some key signs point to bulls still having an edge, hinting at a possible BTC price comeback.

Bullish split boosts Bitcoin bounce hopes

Bitcoin’s had a rough start this month. It’s down over 10.50% hanging around $57,000 as of July 7. BTC hit a low of $53,550 knocked down by worries of a market crash. These fears stem from Mt. Gox paying back over 140,000 BTC to its customers and the German government selling off BTC. Bitcoin’s recent price drop came with an interesting twist. As prices fell, the relative strength index (RSI) went up. This mismatch often means sellers are losing steam even though prices keep sinking. Market watchers see this as a possible sign of change. It could mean the downward slide is about to hit the brakes. Some even think Bitcoin might bounce back soon, as buyers start feeling more upbeat about its prospects.

Bullish hammer & oversold RSI

Two classic technical indicators back up the bullish reversal idea.

First, Bitcoin made a bullish hammer candle on July 5. This candle has a small body at the top, a long lower shadow, and almost no upper shadow. We saw something like this in May too.

Second, Bitcoin’s daily RSI sits near its oversold line of 30. This often means prices will level out or go up soon. Jacob Canfield thinks this sign could mean a bounce back. He says BTC might hit its “old range high” of over $70,000 again.

Bitcoin miner capitulation hints at BTC price bottom

Bitcoin miner capitulation numbers are close to what we saw when the market hit rock bottom after FTX crashed in late 2022. This could mean BTC is at its lowest point. Miner capitulation happens when miners cut back work or sell some of their mined Bitcoin and savings. They do this to keep going make money, or protect themselves from Bitcoin risks. Market experts have pointed out many signs of giving up in the last month. During this time, Bitcoin’s price dropped from $68,791 to as low as $53,550. One big sign is a huge drop in Bitcoin’s hashrate — the total computer power that keeps the Bitcoin network safe.

The hashrate decreased by 7.7% and finally reached a 576 EH/s four-month low level on April 27 after surpassing the previous peak. This slump implies that some speculative miners are curtailing their operations, thus signifying the financial strain prevailing in the mining community after halving.

Since the weakest miners leave the market with less profitable operations or they lose it, the more competitive miners will take home bigger profits, and thereby, they can eventually come to terms with their fifth and thus not have to go some additional selling of BTC. These indicators indicate that the Bitcoin market may be nearing the bottom, which is analogous to the previous cycles where miners’ sales and operational cuts happened before the market recovered.

Wall Street bets on September price reduce upward thrust

Bitcoin’s ability to resume its bull run within the coming weeks rises similarly due to rising interest charge possibilities in September.

As of July 7, Wall Street traders noticed a 72% opportunity of the Federal Reserve cutting interest rate charges by 25 basis points, in step with facts accumulated by means of CME. A month ago, the possibility of the same was 46.60%. Expectations for lower interest fees have risen due to a slowdown in hiring in the United States.

When the task marketplace weakens, the Fed regularly considers cutting interest rates to stimulate economic activity. Lower interest rates are usually bullish for Bitcoin and other riskier assets because they make traditional safe investments like U.S. Treasury notes less attractive.

Bitcoin ETF investors return after July decline

Another bullish indicator for the BTC market is the resumption of inflows into the U.S. based Spot Bitcoin exchange-traded price range (ETF) after days of consecutive outflows.

On July 5, when the U.S. reported weak unemployment data, those price range collectively attracted $143.10 million really worth of BTC, in step with records from Farside Investors, indicating a rising risk sentiment among Wall Street traders.
The Fidelity Wise Origin Bitcoin Fund (FBTC) spearheaded the inflows with $117 million. The Bitwise Bitcoin ETF (BITB) saw a net inflow of $30.2 million, and the ARK 21Shares Bitcoin ETF (ARKB), along with the VanEck Bitcoin Trust (HODL), recorded inflows of $11.3 million and $12.8 million, respectively.

In contrast, the Grayscale Bitcoin Trust (GBTC) experienced a net outflow of $28.6 million.