Bitcoin's drop below $77,000 hides three bullish signals

Bitcoin (BTC) slipped below $77,000 over the weekend. The cryptocurrency has now extended a four-day losing streak, erasing nearly 6% of its weekly value.

At press time, Bitcoin traded at $76,819, down 0.1752% over the past day.

Bitcoin loses 6% on week as three bullish signals surface

Despite the drawdown, three quieter signals tell a different story. Wallet growth, a contrarian retail flip, and a recovering BTC/gold ratio paint an optimistic picture for BTC.

Data from Santiment shows bearish BTC commentary now exceeds bullish posts for the first time since April 21. The analytics firm treats the shift as a contrarian indicator.

“Since crypto historically moves opposite to the crowd’s expectations, this level of bearishness from retail is a great sign. As small traders sell off their coins as a reaction to this mild downswing, probabilities of a rebound are heightened while most people expect a further drop,” the post read.

At the same time, larger holders have moved the opposite way. Wallets holding at least 100 BTC have climbed to 20,229, up 11.2% from 18,191 a year ago, with each address now controlling roughly $7.7 million.

Such wallets typically belong to institutions, corporate treasuries, and long-duration holders. Their steady accumulation through volatile stretches signals confidence in Bitcoin's trajectory.

“Historically, rising whale wallet counts are viewed as a sign that key stakeholders still have confidence in Bitcoin’s future value and scarcity. What makes this especially notable is that the growth in 100+

BTC wallets has continued during periods where retail traders have frequently shown fear, impatience, or skepticism,” Santiment said.

Research firm Delphi Digital flagged a third signal. The BTC/gold ratio has recovered 46% from its February lows and now sits near 17.6.

Gold has corrected 18% from its January peak, while Bitcoin has ground from the mid-$60,000s. The metric tracks relative strength between the two assets.

Delphi’s market strategist projects that the weekly 9- and 21-period exponential moving averages of the ratio will produce a bullish crossover in early June. Past green crosses preceded BTC rallies of 148%, 641%, and 148%.

Now, newly confirmed Fed Chair Kevin Warsh holds his first Federal Open Market Committee meeting on June 16-17. Markets are pricing roughly a 1.2% chance of a rate hike.

Whether the three signals can override macro headwinds will depend on Warsh's debut meeting and the path of inflation through a summer still shaped by Iran tensions.