Bitcoin is finally breaking out of the narrow band that it had been in for the majority of May. It did leave the range due to strong bearish momentum in the 2nd week of June.

The Bitcoin's most recent weekly performance was not in line with the expectation that a bearish breakout was expected following May's bearish and April's bearish performance. It has continued to prolong its decline and was trading at $23,707 as of press time. The price action also fallen below a long-term declining trend line.

BTC is ripe for a recovery rally

BTC is considered to be oversold by the RSI due to its prolonged downside. But, the market suggests that BTC could be ripe to take a step up in the Money Flow gauge that can be seen to be in an accumulation zone. These indicators indicate that BTC is primed to see a rebound rally, however, could it also be an indication that BTC is on the edge of another major bull run?

Even though Bitcoin is currently overvalued at the moment There is the possibility that it could have more downside. In the moment, bears are waging through the market, resulting in the liquidation or reversal of long positions. Margin calls are a major contributor to the downward pressure, and could keep pushing the price lower. Lower prices have brought BTC's value closer to its real value.

The Glassnode BTC Pricing model predicts that Bitcoin becomes an accumulation zone after its price converges with its realized price. The Bitcoin price has already surpassed the realized price and any further downward pressure could push the Bitcoin price lower than the value of the realized. This has traditionally led to a massive accumulation and the beginning of a bullish trough.

The MVRV ratio can also be used as an effective indicator for confirming the conclusion of the trend. For instance, if it falls below 1 when prices fall below the price line that is realized and a bull market begins immediately after. Its MVRV ratio was 1.14 at the time of publication.

The distribution of supply by balance on addresses shows that accounts holding between 1000 to 10,000 BTC increased their holdings by 26.78 percent to 27.02 percent between the 11th of June between 13 June and 11 June. This indicates that they were purchasing the dip. Addresses with holdings Between 10,000-100,000 decreased the amount of money they held from 11.97 percent to 11.76 percent over the same time.

The balance of addresses that hold between 100,000 to one million BTC coins was unchanged. This suggests that some addresses that had larger balances were able to transfer substantial amounts. This could be the reason for the down pressure, along with the selling pressure caused by margin calls.

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