aBitcoin
Is Now The Perfect Time To Buy?
Published
3 hours agoon
By
adminAs Bitcoin price valuation inches closer to the $65,000 mark, the asset has grabbed the attention of market analysts, with one recently highlighting a key indicator that now suggests a potential further recovery in BTC’s price.
Particularly, according to a recent post on the CryptoQuant Quicktake platform by an analyst under the pseudonym ‘Darkfost,’ the Bitcoin Stock-to-Flow (S2F) reversion chart is now showing a major buy signal for Bitcoin.
Related Reading
S2F Signal Prime Buy Opportunity
The S2F model is widely used to forecast Bitcoin’s price by measuring its scarcity. It indicates whether the market is leaning towards a buy or sell zone based on its supply rate.
Darkfost explained that the S2F reversion chart is now signalling a potential buying opportunity, with the SF ratio dipping below 1, which represents a green zone.
This zone suggests that Bitcoin may be undervalued compared to its historical trend, making it a potential time to accumulate BTC.
The analyst elaborated that the last time Bitcoin entered this buy zone was in June and September of 2023, followed by notable price recoveries.
Investors who had taken positions during these periods saw favorable returns as Bitcoin’s price rallied in the following months.
Notably, the S2F model’s predictive nature has often been a major tool for traders looking to capitalize on long-term Bitcoin trends. Asides its movement below 1, when the SF ratio climbs above 1, it signals a red zone, or profit-taking opportunity.
Bitcoin Price Action And Key Technical Levels
In addition to the S2F signal, Bitcoin’s price action in the past few days has also resulted from recent macroeconomic events, particularly the US Federal Reserve’s interest rate cut.
Following the rate reduction by 50 basis points on Wednesday, Bitcoin surged past $64,000 in the early hours of today, marking a significant rally given the asset has been in a bearish and accumulation phase prior.
However, as of now, the cryptocurrency has retraced slightly from its 24-hour high above $64,000 and is trading at $63,036, down by a mere 0.1% over the past day.
Meanwhile, despite the S2F reversion chart pointing to a potential buying opportunity, another crypto analyst, Ali, has raised concerns about Bitcoin’s near-term future.
Related Reading
In a recent post on X, Ali highlighted Bitcoin’s current position relative to its 200-day Simple Moving Average (SMA), a critical indicator for determining the strength of a market trend. Bitcoin is currently testing this level, which historically has been an essential factor in confirming a bull run.
Ali noted that previous failures to reclaim the 200-day SMA, as seen in 2020, 2018, and 2014, led to significant price corrections. If Bitcoin fails to hold above this level in the coming days, it could signal a broader market downturn.
However, if it maintains support, Bitcoin could continue its upward trajectory, setting the stage for further gains.
Featured image created with DALL-E, Chart from TradingView
Source link
You may like
Elon Musk Under Fire As US SEC Moves For Sanctions In Twitter Probe
SEC Approves Options Trading on BlackRock’s Spot Bitcoin ETF IBIT
test
TOKEN2049 Singapore main highlights
BlackRock Bitcoin ETF Receives SEC Approval For Options Trading
JPMorgan Chase Allows 35 Strangers To Access Customer’s Credit Card in Financial ‘Fiasco’: Report
Elon Musk Under Fire As US SEC Moves For Sanctions In Twitter Probe
SEC Approves Options Trading on BlackRock’s Spot Bitcoin ETF IBIT
Is Now The Perfect Time To Buy?
test
TOKEN2049 Singapore main highlights
BlackRock Bitcoin ETF Receives SEC Approval For Options Trading
JPMorgan Chase Allows 35 Strangers To Access Customer’s Credit Card in Financial ‘Fiasco’: Report
How Bitcoin Will React After The U.S. Election
Successful Beta Service launch of SOMESING, ‘My Hand-Carry Studio Karaoke App’
Pepe Unchained raises $14m, announces Ethereum L2 blockchain developer grants scheme
OpenSea NFT Marketplace Hit With Class Action Suit Over Alleged Securities Sales
$524 Became $3.78M as Bitcoin Holder Moved 59 BTC After 13 Years
MicroStrategy Buys Additional $489 Billion Worth of Bitcoin
MicroStrategy buys Bitcoin worth $458m, total holdings hit 252,220 BTC
Bitcoin Price (BTC) Trades Flat While Ether Price (ETH) Jumps 3.4%
Top Crypto News Headlines of The Week
Ethereum, Solana touch key levels as Bitcoin spikes
Bitcoin 20% Surge In 3 Weeks Teases Record-Breaking Potential
Bitcoin Open-Source Development Takes The Stage In Nashville
Ethereum Crash A Buying Opportunity? This Whale Thinks So
Why Did Trump Change His Mind on Bitcoin?
New U.S. president must bring clarity to crypto regulation, analyst says
Will XRP Price Defend $0.5 Support If SEC Decides to Appeal?
Shiba Inu Price Slips 4% as 3500% Burn Rate Surge Fails to Halt Correction
Citigroup Executive Steps Down To Explore Crypto
Bitcoin flashes indicator that often precedes higher prices: CryptoQuant
Crypto Market Movers: 5 Altcoins Making Waves This Bull Run
Dormant Bitcoin wallet from 2014 moves BTC worth $10.2m
Polygon on-chain activity spikes despite MATIC price dip
The Other Satoshis: Bitcoin's Most Important Early Contributors
Trending
- 24/7 Cryptocurrency News1 month ago
Top Crypto News Headlines of The Week
- Bitcoin2 months ago
Ethereum, Solana touch key levels as Bitcoin spikes
- Bitcoin2 months ago
Bitcoin 20% Surge In 3 Weeks Teases Record-Breaking Potential
- Opinion2 months ago
Bitcoin Open-Source Development Takes The Stage In Nashville
- Altcoins2 months ago
Ethereum Crash A Buying Opportunity? This Whale Thinks So
- Donald Trump2 months ago
Why Did Trump Change His Mind on Bitcoin?
- News3 weeks ago
New U.S. president must bring clarity to crypto regulation, analyst says
- Price analysis1 month ago
Will XRP Price Defend $0.5 Support If SEC Decides to Appeal?