With Bitcoin [BTC] above $20,000, is a slow recovery on the cards this time
Bitcoin [BTC] has once again become the talk of the town especially after its latest recovery in the crypto market. After going below $18k, there was speculation of a further dip in BTC prices. But it has held on since and has even launched a massive recovery to $21,500.
One of the pains of the current crypto market situation is the volatile nature of assets. Bitcoin, itself, has gone through waves of volatility in the past few months. Retail failures in the crypto sphere have prompted the market to fluctuate with Terra, 3AC, and Celsius leading the charge. But latest data suggests a strong recovery is on the horizon as we edge towards July.
BTC is currently trading at around $21,400 with no significant changes during the past day. However, it has shown a bullish curve over the past week with a 16.4% leap after the latest ‘crypto winter’. There are some interesting developments observed in BTC data that suggests a mixed prediction for Bitcoin’s immediate future.
Firstly, Bitcoin’s supply on exchanges has dropped to its 2018 levels. As per data from Glassnode, the BTC supply on centralized exchanges crossed 2.4 million in March 2018 and has never dipped below this. However, since the Celsius and Babel announcements on 13 June, there has a steep increase in exchange outflows. In their respective announcements, these exchanges also decided to freeze withdrawals on user accounts.
Historically, exchange outflows and low supply on exchanges have been bullish signs for Bitcoin.
As per a Glassnode tweet, the number of addresses holding 10K+ BTC just touched 100. This is another bullish signal suggesting rampant accumulation.
However, there are mixed signal for investors in the market. The trading volume of BTC has dropped to 27% in the past day. This can potentially affect the BTC prices in the near future. Another worrying issue is miners selling their holdings.
So, where does Bitcoin go from here?
Despite the ongoing mixed signals in the market, few prominent members of the crypto community remain bullish on cryptocurrencies despite the recent slump. Venture capitalist, Tim Draper stated that Bitcoin would hit a whopping $250,000 within a year. Furthermore, Fred Ehrsam, Co-founder of Coinbase, recently tweeted about the same.
One thing most people don't fully grasp: it takes years, often decades, to go from a new infrastructure-level technology breakthrough (like crypto) to a vibrant ecosystem of mainstream applications.
— Fred Ehrsam (@FEhrsam) June 20, 2022