Bitcoin’s recovery signals the start of a bull, but is the bottom really in?
The new week has brought good news for the price of bitcoin. After struggling to hold over $ 20,000 over the past month, the digital resource has finally found a much-needed deadline that comes out this weekend. This new upward trend has signaled some good things for the market going forward. However, the question remains whether the bottom is in and the bear trend is finally over.
Bitcoin recovers to $ 22,000
With the price above $ 22,000, there has been a lot of cheering among bitcoin investors so far. This new price point follows on the back of many bullish and bearish trends. But mostly it is thanks to the semblance of normality that is returned to the market after large platforms had filed for bankruptcy. It has thrown the space to a point where investors have accepted the fate of these suffering platforms and look to the future.
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With the return of a certain normality came the bullish accumulation trend among investors. An obvious case of this is the number of investors who have more than 1 BTC in their accounts. According to Glassnodethis figure reached a new all-time high in the morning hours on Monday with 1,557,225 addresses with 1+ BTC on the balance.
This accumulation trend is without a doubt one of the driving forces behind the rise in price. Others include Ethereum Merge, which has triggered a massive rally in the market, thus affecting the prices of other cryptocurrencies at the same time.
Bitcoin price above $22,000 | Source: BTCUSD on TradingView.com
Is the bottom in?
The recovery has led to talks that bitcoin is finally finding its bottom, which at today’s exchange rate seems to have been at $ 17,600 that was hit last month. If this is the case, there may be more recovery in store for the future of the digital resource. However, it is not so easy, especially given that the cryptocurrency had previously left the bull market.
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Crypto bear markets are notorious for the kind of price declines associated with them. An example is the bear market in 2018, where the price of bitcoin had fallen around 84% from the all-time high. This was the case in the previous bear market in 2014 and has become an expected trend.
Given this, since the price of bitcoin still manages to maintain a value of more than 25% from the all-time high, the possibility that the absolute bottom is not yet in is still above the market. Bitcoin’s price following a historical trend means that the digital asset must fall to at least $ 13,000 to meet these requirements. Otherwise, it is possible that this recovery is only temporary, and there are several disadvantages to experience.
Featured image from CNBC, chart from TradingView.com
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