With Bitcoin [BTC] above $20,000, is a slow recovery on the cards this time

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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.

HODL on!

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.

Source: Glassnode

As per a Glassnode tweet, the num­ber of address­es hold­ing 10K+ BTC just touched 100. This is anoth­er bull­ish sig­nal sug­gest­ing ram­pant accumulation.

Source: Glassnode

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.



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