• Recent data suggested a decline in selling pressure, indicating potential for a market relief rally.
• Positive shifts were seen in Bitcoin’s MVRV ratio and active addresses, signaling an optimistic market trend.

The global crypto market briefly surpassed a market capitalization of $2.35 trillion earlier on the 2nd of July before experiencing a slight contraction, losing about $10 billion in market cap value. 

This downturn was partly attributed to Bitcoin [BTC], which saw a decrease from its 24-hour peak of $63,790 to its press time price of $62,461, marking a 1.2% reduction during this period.

Signs of a relief rally

As the dust settles from a tumultuous June, market analysts are hinting at the onset of a “relief rally.” According to insights from the crypto intelligence platform Santiment, the market could be at a turning point. 

Earlier, Santiment shared insights on X (formerly Twitter), suggesting a shift in market dynamics due to reduced selling pressure on exchanges. The platform noted,

“After so much small trader capitulation, the crowd’s negativity and average trader losses means that a relief rally may just be beginning.”

Minkyu Woo, an analyst and verified author at CryptoQuant, echoed this sentiment in a recent analysis.

He observed that the exhaustion of sellers was becoming apparent as the average size of top Tether [USDT] outflows from exchanges decreased, following a significant surge in June.  

Woo stated,

“This reduction in outflows suggests that investors are more inclined to hold their assets rather than withdrawing cash from the market. This could imply that investor sentiment has turned more positive following the Bitcoin halving event.”

Bitcoin: Are there signs of bullishness?

To gauge the bullish sentiment further, examining Bitcoin’s key metrics is essential.

So, AMBCrypto noted that the Market Value to Realized Value (MVRV) ratio, a significant indicator of market sentiment, has recently shown a decline of nearly 1%. At press time, the MVRV ratio was 1.96. 

This metric measures the disparity between the market value and the realized value of Bitcoin, with a lower ratio often indicating undervaluation, potentially signaling a good buying opportunity or a bottoming market.

Additionally, Bitcoin’s network activity has seen an uptick, with the number of active addresses rising from 3.14 million in early June to approximately 3.88 million at press time.

Read Bitcoin’s [BTC] Price Prediction 2024-25

An increase in active addresses typically suggests a growing user engagement and can be a positive sign for the market’s health and bullish potential.

This bullish outlook coincided with AMBCrypto’s recent report on BTC that the asset’s miner reserves have shot up, which might indicate that the selling from the miners may just be cooling off.