Bitcoin is showing “early signs of stabilization” as the price momentum exits an extreme negative regime, reported analytics firm Swissblock on Tuesday. It added that on-balance volume (OBV) is also starting to support the regime shift and “recovery begins with momentum, but a new trend requires buyers to follow.”

OBV is a momentum indicator that uses volume flow to predict price changes by measuring cumulative buying and selling pressure.

No Full BTC Recovery Yet

Swissblock said that it was not yet a confirmed recovery, “but if participation continues to strengthen along the way, the recovery signal becomes much stronger.” Bitcoin has gained 10% from its cycle low of around $58,000 on June 30, but remains down 50% from the October peak.

Bitcoin is “easing into consolidation,” and selling has cooled, reported Glassnode on Monday.

“Hot capital is creeping back though, which could stir up volatility even as profits climb.”

The analytics firm added that the Bitcoin market is currently exhibiting “signs of structural stabilization”, characterized by a transition from “aggressive distribution toward a state of equilibrium.”

“While spot trading volumes remain subdued, this contraction suggests a period of consolidation, with participants adopting a more cautious, measured stance as the asset builds a base.”

Meanwhile, Santiment said that the crowd is still hyper-focused on the Strategy selloff FUD. Michael Saylor’s company sold 3,588 BTC for $216 million to fund dividends on Monday, causing the asset to dip 2.4% immediately after the announcement.

However, “this climb looks like a somewhat unexpected relief rally after Bitcoin has defended the key $60K level yet again,” said Santiment.

Grayscale said that Strategy’s sale “may reduce financing risk and support Bitcoin price stability,” and investors are responding positively to this decision.

Bitcoin Price Outlook

Bitcoin has recovered from its Strategy FUD sell-off dip to reach a two-week high of $64,500 in early trading in Asia on Tuesday. However, it had retreated to $63,200 at the time of writing, back to where it was this time yesterday, before Saylor offloaded.

Just like in 2018, Bitcoin is off to a good start in July, said ITC Crypto founder Benjamin Cowen.

“Usually, Bitcoin is strong in July, and the weakness shows back up in the Aug/Sep timeframe,” he added.

Source: CryptoPotato