The crash of Bitcoin in the months of May and June has shaken the crypto ecosystem. Altcoin projects have also been affected and the fear in the crypto market seems to be at its peak.
Bitcoin had an opening price of $32K for the month of June, but the asset dwindled down to as low as $17k a few days back. Interestingly, Bitcoin seems to be gradually recovering as the asset now trades around the $21,000 region. Will this recovery be followed by actual brighter days?
Reasons Why Bitcoin May Gain Momentum Again
Miners Have Stopped Selling: According to data from Glassnode, more miners are holding the leading digital currency than in the past month. Accumulation of Bitcoin by miners dwindled in March. In April and May, selling pressure from Bitcoin miners peaked, as the price of Bitcoin kept tumbling.
For the first time in a few weeks, the cumulative accumulation for the crypto asset has a net positive value compared to the previous week. Bitcoin’s hashrate has also been high recently. These metrics provide a beam of positivity for bullish crypto traders.
Bitcoin Buying Pressure Increases: The buying pressure for BTC has sprung up in the past week. The Bitcoin Archive Twitter account revealed that more than 13K different wallet addresses have bought 1 BTC or more in the past week.
Interestingly, the price of Bitcoin in the last three days has reflected this positive pressure. Since its extreme low of $17,800 on Saturday, Bitcoin has appreciated by about 20%. Bitcoin’s market capitalization is currently above $406 billion. Also, the total cryptocurrency market cap is above $900 billion once again, after falling to the $800 billion levels a few days back.
From the daily charts, the closest resistance is around $29K. Swing traders may be looking to open long positions at the moment.