Bitcoin below $30K but a bull run might be imminent — here’s why

Bitcoin prices might test $20,000 FOMC meeting.
Bitcoin prices might test $20,000 in the aftermath of the FOMC meeting.

LAGOS (CoinChapter.com) — Bitcoin (BTC) reached $30,045 during intraday day trade yesterday. Failing to remain firmly above $30,000, the bears caused a downward spiral forcing the coin to record a 2.21% decline in the last 24 hours.

At press time, the price per Bitcoin BTC exchanged hands at $29,740.78. However, with the cryptocurrency market attempting to end its bearish run, the largest cryptocurrency might end its continuous struggle with holding the strategic $30,000 price index.

Investors Continue to “HODL”

Marking an ATH of 3,531,950 at press time, data from Glassnode revealed that the Number of Addresses Holding 0.1+ Coins just registered an ATH.

Registering an index of 3,530,736 addresses two days ago, the spike in the number of addresses holding 0.1+ coins indicates increased buying pressure as the cryptocurrency market gears up for recovery after a prolonged bearish run. 

Number of Bitcoin addresses with a balance greater than or equal to 0.1 BTC. Source: Glassnode
Number of Bitcoin addresses with a balance greater than or equal to 0.1 BTC. Source: Glassnode

In addition, the BTC network has witnessed a growing trend in the number of users transacting the coin in the last seven days.

The number of unique addresses that appeared for the first time in a transaction of the BTC has taken on an upward trend since May 29. At 322,561 on May 29, a 29% growth in new addresses has been recorded. At the time of writing, this was 416,598.

Furthermore, liquidations on the network appeared to have slowed down this week. Recording a liquidation of nearly $336 million worth of Bitcoin’s long positions on June 1, data obtained from Coinglass at the time of press depicted an ongoing reduction of liquidations. 

Bitcoin, Bitcoin below $30K but a bull run might be imminent — here’s why
Bitcoin contract liquidation as of June 4. Source: Coinglass

Another indication that BTC holders continue to hold in anticipation of a bullish run is the Exchange Flow Balance on the network. With a positive 207, the number of BTCs in wallets across exchanges is beyond the number of BTCs left. 

Exchange BTC balance
Exchange BTC balance

Bitcoin Holders Should Exercise Caution

Although on-chain analysis hints at an impending bullish run, investors need caution. According to the Bitcoin Fear and Greed Index, with prices below $30,000, the latest data showed that the Bitcoin Fear and Greed Index is 14, which signifies Extreme Fear. At this index, an influx of increased exits is common.

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Bitcoin, Bitcoin below $30K but a bull run might be imminent — here’s why

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