Bullish market regains control as volume increase puts Bitcoin price above $18,500
A quick recovery of Bitcoin and altcoins are signs that BTC may have hit a low point at $17,650.
The sharp correction of Bitcoin (BTC) to USD 17,650 didn’t surprise investors and many expected the digital asset to fall as low as USD 16,000. Therefore, the rapid recovery back to USD 18,600 is intriguing and reinforces the popular belief that retail and institutional investors are eager to buy every BTC fall.
Although the possibility of another drop persists, three factors point to a Bitcoin Code floor at USD 17,650. The factors are that whale deposits reach a peak, BTC recovers quickly and trading volume recovers again.
Why the price of XRP and DeFi tokens fell while BTC suffered a correction
Whale deposits reach a peak
According to CryptoQuant CEO Ki Young Ju, whale deposits reached a peak earlier this week. Usually, when the average entry indicator of all exchanges reaches a maximum, a rebound follows.
All Exchanges Inflow Mean.
Whales represent the biggest threat to Bitcoin’s short-term performance because they can exert immense selling pressure on the asset in a short period. Therefore, when fewer whales can sell, it’s optimistic for BTC. Ki wrote:
„BTC’s average entry into all exchanges (7d MA) reached an eight-month peak since March, when the price hit a year-low. Very optimistic for the long term.
Based on several factors, Ki said Bitcoin could fall lower, but buying BTC at the current level is more attractive. He said:
„BTC could fall more, but I think it’s better to play hard here and hold on to the reduction. Looking forward to USD 18,280. I’ll publish some bullish charts that show we can reach USD 20,000 by the end of this year (or beginning of next year, I think)“.
Bitcoin Price Recovers Quickly
After a notable increase in purchase volume, Bitcoin registered a rapid change and recovered towards the 20-day moving average.
The price of Ethereum points to $590 after bullish buys vigorously the fall of ETH
BTC first claimed the USD 18,000 level as a support level, then broke through to USD 18,260 before retreating to the USD 18,500 range. The continued recovery of BTC without major corrections indicates that the market is still resilient and in favor of the bulls.
Initially, Cointelegraph reported that altcoins were hit the hardest as the price of Bitcoin fell sharply below USD 18,000. But the BTC recovery has been helped by the strong rebound of altcoins such as Ether and XRP.
This trend suggests that investors are looking for higher risk works, which is indicative of the growing certainty in the market.
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Increases BTC’s trading volume
Analysts at Santiment, an on-chain analysis company, found that Bitcoin volume increased dramatically after the recent setback.
When Bitcoin recovers with a significant increase in volume, it means increased trader confidence in the short term. The analysts explained:
„Looking at how the trading volume for the four most discussed #criptom currencies‘ assets has compared, $BTC has increased as prices fell to less than $18,000 for the first time in 11 days. In addition, $XRP is approaching $ETH again in anticipation of the airdrop.