Bitcoin Finally Catches Its Breath! But Everything Could Change...

Bitcoin seems to finally be catching its breath after difficult weeks. Certainly, the road to a sustainable recovery is still fraught with obstacles, but recent indicators are quite encouraging. A welcome respite that could pave the way for a new bullish dynamic, provided that the demand for the leading crypto ends up following the trend.

Bitcoin: Calm Returns on the Sales Front!

According to the latest data, Bitcoin balances on over-the-counter desks have stabilized since late April 2024. A positive signal that indicates a less abundant supply, emanating from institutional players and large investors. Additionally, short-term traders’ profit margins are now low or even negative after the early March peak. Historically, this type of configuration has often preceded the formation of market bottoms.

Moreover, Bitcoin miners also seem to be going through a tough phase, with extremely low profitability levels, comparable to those observed during the Covid-related stock market crash in March 2020. A difficult situation that has often been a bearish signal in the past.  

Demand, the Key to Rebound

For while the easing of selling pressure brings a breath of optimism, it alone cannot ensure a proper recovery. To hope to fully convert the bullish trial, Bitcoin will need tangible signals of a real increase in demand from investors.

For now, demand seems to simply be stabilizing after a difficult April. While long-term holders and whales have indeed strengthened their positions in recent weeks, a real surge in appetite still seems to be missing.

Analysts thus point to the need for a new wave of substantial purchases in Bitcoin index funds (ETFs), products favored by a growing segment of institutional investors. A first step that, coupled with the already observed growth of liquidity in stablecoins, could well give a decisive boost to the nascent bullish trend.

For now, however, the status quo seems to prevail between buyers and sellers in the crypto market. A fragile balance that only a durable influx of new capital could definitively tilt towards a rise for Bitcoin.