Some on-chain data in June signaled a favorable time to buy the first cryptocurrency, according to ForkLog report.
Based on the ‘Difficulty Ribbon’ indicator, Difficulty Ribbon Compression has been in the “green zone” since the end of March, which indicates the capitulation of some miners. Many analysts see this as a sign that the market has bottomed.
Against the backdrop of price plunge, Bitcoin miners sent significant quantities of digital gold to centralized exchanges. Inflows exceeded $2 billion on June 18 alone.
The thesis of miner capitulation was confirmed by the Hash Ribbons indicator, entering the yellow zone for the first time since mid-2021.
The Puell Multiple values in early June were in the green zone, indicating Bitcoin was oversold. The last time the metric produced such low readings was December 2018.
Against this backdrop, the number of addresses with balances above 0.1 BTC rose at an accelerated pace (+3% over the last month). A similar dynamic was seen among retail investors on larger addresses. This suggests that some market participants were buying Bitcoin on dips.
Despite the market slide in June, the capacity of Bitcoin’s Lightning Network (LN) continued to grow — by the end of the month it stood at 4,005 BTC vs 3,916 BTC at the end of May. Meanwhile, the number of LN nodes and channels hardly changed: up 0.4% and 0.6% respectively.
Sponsor of the ‘Bitcoin Industry in Numbers’ column — the global blockchain ecosystem Binance.
As Bloomberg Intelligence’s senior commodities strategist Mike McGlone notes, Bitcoin’s price behaves the same as the end of the bear market in 2018.
Investor Michael Burry, who foresaw the 2007 housing crisis, acknowledged that digital gold will continue to fall, as it sits in the middle of a bear cycle.
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