Bitcoin market oversold and ready for a major rebound

At the time of writing, Bitcoin prices had recovered to the $ 33,000 level for the first time in over a week. The king of crypto made 1.5% on the day, building on yesterday’s momentum after a week of selling pressure.

Major rebound coming?

Analyst ‘CRYPTO₿IRB’ [@crypto_birb] observed that there has been a complete reset of trend and momentum.

By analyzing Net Unrealized Profit / Loss (NUPL), a measure of the difference between unrealized profit and unrealized loss to determine whether the network as a whole is currently in a state of profit or loss, the analyst added:

“NUPL suggests it’s as oversold as it was in September 2019 or September 2020 when it was trading at $ 6-9,000. We are lucky if we get 23-24k, but the market is ready for a major rebound and a final stage in November-December imo ”,

Technically, BTC should first recover the 50-day moving average which is currently $ 35,200. To further strengthen an uptrend, the next target is the 200 day MA which is $ 44,670 according to Tradingview. The staggered daily death cross that signaled the longer-term downtrend occurred on June 15.

The Bitcoin Fear and Greed Index, which can be used as an indicator of market sentiment, is currently still in scary territory, registering a 23, or “extreme fear”.

Bitcoin still fundamentally strong

The fundamentals of the Bitcoin markets are still quite strong. Market actor Elon Musk made a big impact this week when he said his two companies, Tesla and SpaceX, hold Bitcoin. He added that besides himself, they had no intention of selling.

Naturally, there has been a FOMO driven pump in reaction to this and BTC has gained 10% since the disclosures.

China’s crackdown on FUD also appears to be dissipating, with the general consensus among industry experts being positive. The great migration of miners has led to an increase in mining using renewable energies. Even the mainstream media are now reporting that Bitcoin mining is better for the environment than it was when China dominated hash power.

The next few days or maybe weeks will determine the direction of the next big move, as we always come after such a long period of low volatility.