Main figures show that bulls may be betting a lot on Bitcoin as it regains profits from its late February decline parallel to the global economy.
Investors seem to be accumulating with real confidence. According to Arcane Research, Bitcoin's 7-day average trading volume is measured by Bitwise's 24-hour actual spot volume index at the highest level since June 2019, when BTC reached its highest level of the year at $ 13,764.
This figure has more than doubled in recent weeks, driven by some of the biggest days ever recorded by the Bitwise spot volume index including a day that hit ATH of $ 5.7 billion on March 13.
Volume will be considered a necessary part of the bullish sentiment for Bitcoin, which comes after a market crash and a sharp drop in hash rate, an indicator that accurately determines the overall security level of the Bitcoin network. as the psychology of miners.
An even more encouraging detail is another sign that long-term investors are in the middle of an accumulation cycle. According to data from Arcane Research and Glassnode, hodlers have just started locating and stopped selling.
Change the net position of Bitcoin hodlers. Source: Arcane Research
BTC price is quickly bouncing up
The market was reeling on March 12 when King Coin lost nearly 40% during the biggest fall in seven years. Surprisingly, some top analysts claim that BTC could have plummeted to zero if BitMEX - which saw most of the trading volume during the discount - was not offline.
However, Bitcoin has had a healthy rebound in the weeks following the global covid-19 crash and bulls may now have more reasons than one to bolster confidence.
The hash rate has bounced back significantly and seems to have reversed the downtrend. It soared to 112.5 million tera per second - the highest level before the March 12 sell-off.
Bitcoin hash rate of 30 days. Source: Blockchain.com
BTC has also outperformed all major capital, asset, and commodity indices in its resilience since its most recent low, compared to the high on February 12, before the sell-off appearance. do covid-19. Bitcoin has risen 80% since bottoming at $ 3800, March 12.
Bitcoin profits have been since the March lows
Finally, the CME BTC futures leverage funds closed nearly all of their short positions and now seem to be moving to long Bitcoin - or at least by the end of January when BTC is in the middle. an uptrend week.
With foreign currencies plunging for decades against the U.S. dollar and the free-fall stock market, these figures will certainly strengthen Bitcoin's viability as a hedge against recession. Global economic and monetary reserve potential.
Bitcoin sustained $ 6500 but has yet to break out of the bear market
With lower levels of support, Bitcoin saw a third straight day above $ 6,000 as the impact of covid-19 seemed to diminish for some parts of the world financial system.
They are building on the success of the Dow, which on Wednesday saw its biggest day-on-year growth since 1933 at 20%. According to the Wall Street Journal, this is even enough to call a bull market.
This follows a notice from the US Federal Reserve about printing unlimited amounts of money, which can instantly pump the market but disturb the proponents of Bitcoin.
While Bitcoin continues to fluctuate, data shows that traders are not in the mood to sell - according to Glassnode, the balance of exchanges has been at a low level for eight months since Thursday.
In a potential forecast, trader Alistair Milne has demonstrated that BTC may even be able to reach $ 9,000 within the next week.
However, for analyst Michaël van de Poppe, Bitcoin still has much to prove to be completely out of its bear market.
While he called the 80% increase a huge amount, in a video update on Thursday, he said that the level above $ 6,900 was still unreachable.
"I don't feel that Bitcoin is in any bull market right now, because we have lost quite a large support and we are not claiming anything at all."
(embed) https://www.youtube.com/watch?v=RBNjZSxXXfE (/ embed)
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Annie
According to AZCoin News
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