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

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

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 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

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.