Bitcoin’s (BTC) sharp correction to $ 17,650 did not come as a surprise to investors, and many expected digital assets to fall to $ 16,000. Thus, the rapid recovery to $ 18,600 is interesting and reinforces the widespread belief that individual and institutional investors are eager to buy every drop of bitcoin.

While the possibility of another decline remains, there are three factors that point to the Bitcoin bottom of $ 17,650. The factors are that whale sediments reach their peak, BTC recovers quickly and the volume increases again.

Whale occurrences have reached their peak
The whale population peaked earlier this week, according to CryptoQuant chief Ki Yong Joo. Usually, when the average influx of all the centers peaks, a rally follows.

Whales pose the biggest threat to Bitcoin’s short-term performance because they can put a lot of pressure on selling an asset in a short time. Thus, when fewer whales can sell, BTC is bullish. Key wrote:

The average current of all BTC exchanges (7-day moving average) has reached a height of eight months since March, when the price reached its lowest level in one year. Very optimistic in the long run. ”
Based on various factors, Key said that Bitcoin may fall, but buying BTC at the current level is much more attractive. He said:

“BTC may fall further, but I think it’s better to play here for a long time and endure a setback. Craving for $ 18,280. I’m going to post some bullish charts showing that we could get $ 20,000 by the end of this year. (Or early next year, I think). ”
The Bitcoin price is bouncing fast
After a significant increase in purchase volume, Bitcoin quickly turned and gathered towards the 20-day moving average.

BTC first demanded $ 18,000 in support, then raised $ 182,600 before falling to a $ 18,500 range. The ongoing recovery in BTC without major adjustments indicates that the market is still strongly in favor of the bulls.

Cointelegraph originally reported that altcoins were hit hardest when Bitcoin’s price suddenly fell below $ 18,000. But Bitcoin’s recovery has been supported by strong rebounds in altcoins such as Ether and XRB.

This trend indicates that investors are looking for games with higher risk, which indicates increasing confidence in the market.

Bitcoin volume is increasing
Analysts at Santiment, a network analytics firm, found that bitcoin volumes rose sharply after the recent downturn.

When Bitcoin recovers with a significant volume increase, it means increased confidence from traders in the near future. Analysts explained:

“Looking at how the volume compares to the four most talked about #cryptoassets, $ BTC went up when prices fell below $ 18,000 for the first time in 11 days. In addition, XRP is again approaching US dollars more than ETH in anticipation of an airdrop. “

Source: CoinTelegraph

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