Report: Ark Invest Says Bitcoin Appears Oversold After Germanys Massive Selloff
After surviving a torrid start to Q3 2024, asset manager ARK Invest believes that Bitcoin (BTC) is prime for a price rebound in the near term as miners try to remain afloat in the ecosystem.
The investment firm observed a July 18 report stating that the largest digital asset appears oversold following a series of unsavory sell-off reports. Germany set the dominoes falling after offloading 50,000 BTC in its holdings, which sent BTCs price to $55,000.
According to the report, the news of the massive sale forced investors to take short-term profits as traders braced for even grimmer price dips. Reports of Mt. Goxs repayment of BTC to creditors contributed its quota to the decline in asset value, with several analysts predicting a mass sale by recipients.
The report hinges on its argument that BTC is oversold on several fundamentals, including the Relative Strength Index (RSI) and the Money Flow Index (MFI). Ark Invest noted that the sell-off did little to taint inflows into Bitcoin spot exchange-traded funds (ETF) products, with inflows climbing to a daily high of over $300 million for the first time in over six weeks.
Despite the show of resilience, BTC miners capitulated across the board during the selloff, citing unprofitability and an inability to cover operational costs. However, ARK Invest highlights an upside to the streak of capitulation, noting that the reduction in difficulty could trigger a boon for remaining miners.
Based on short-term-holder realized profits/losses and miner outflows, Bitcoin appears oversold, read the report. Current levels of miner outflows suggest that miners are capitulating, a harbinger of a bullish reversal.
Positive long-term prospects
As Bitcoin climbs above $60K, analysts argue in favor of the asset, claiming it could start an extended bull market. For starters, several pundits say that the halving event is yet to be fully priced in, and prices are expected to mirror the movement of previous halvings, gaining up to 100% over 12 months.
Sky Capital founder Anthony Scaramucci predicted that BTC could climb as high as 170,000 before the end of 2025, buoyed by a combination of factors. Scaramucci points out that the inflow of funds to investors (Mt. Gox and FTXs repayment) is positive for BTC, arguing that the recipients will invest the assets.
He cites Bitcoin going mainstream as a potential reason for a bullish run while describing waning selling pressures as only a temporary hiccup for the asset.
Read more: https://zycrypto.com/report-ark-invest-says-bitcoin-appears-oversold-after-germanys-massive-selloff/
Text source: ZyCrypto
