Bitcoin’s (BTC) sharp correction to $ 17,650 came as no surprise to investors and many expected the digital asset to fall to $ 16,000. So the rapid recovery to $ 18,600 is intriguing, and it reinforces the popular belief that retail and institutional investors are eager to buy any BTC dip.
While the possibility of another decline remains, three factors point toward a Bitcoin bottom of USD 17,650. The factors are that whale deposits are peaking, BTC is recovering rapidly and trading volume is picking up again.
Whale deposits peaked
According to CryptoQuant CEO Ki Young Ju, the whale deposits peaked earlier this week. Typically, when the All Exchanges intake average indicator peaks, a rally follows.
Whales are the biggest threat to Bitcoin’s short-term performance as they can put tremendous selling pressure on the asset in a short period of time. So if fewer whales can sell, it’s optimistic for BTC. Ki wrote:
BTC All Exchanges Inflow Mean (7d MA) hit its eight-month high since March, when the price hit its lowest level. Very optimistic in the long run. “
Based on various factors, Ki said Bitcoin could fall lower, but buying BTC at the current level is more attractive. He said:
“BTC could fall further, but I think it is better to play here long and put up with a drawdown. Was craving $ 18,280. I’ll be posting some bullish charts showing we can make $ 20k by the end of this year. (or early next year, I think). “
Bitcoin price is returning soon
After a noticeable spike in buying volume, Bitcoin made a rapid turnaround and rose towards the 20-day moving average.
BTC first claimed USD 18,000 as a support level, then moved to USD 18,2600 before retreating to the USD 18,500 range. BTC’s continued recovery with no major corrections indicates that the market remains resilient and in favor of bulls.
Initially Cointelegraph reported that altcoins took the biggest hit when the price of Bitcoin abruptly fell below $ 18,000. But BTC’s recovery was helped by the strong revival of altcoins such as Ether and XRP.
This trend suggests that investors are looking for higher risk games, which is an indication of the increasing certainty in the market.
BTC’s trading volume is on the rise
Analysts at Santiment, an on-chain analytics company, found that Bitcoin’s volume soared after the recent downturn.
When Bitcoin recovers with a significant increase in volume, it means growing confidence from traders in the near term. The analysts explained:
Looking at how trading volume has compared for the four most talked about crypto assets, $ BTC is up as prices fell below $ 18,000 for the first time in 11 days. Plus, $ XRP is getting closer to catching up with $ ETH in anticipation. of the airdrop. “