Bitcoin is now experiencing a new recovery trend, which has led to it surpassing $30,000 again. It is an encouraging development, after several market crashes that had left investors in panic. While investors can breathe a sigh, of course, as bitcoin begins to recover from its previous crashes, there are still concerns about the future of the market.
Is It the Bottom?
Recent bitcoin’s comeback suggests that the cryptocurrency has either reached bottom or could be on its way back to further losses. However, there are some signs that may indicate that the bottom is indeed reached.
Another is that Bitcoin RSI remains in a firmly oversold region. With this indicator, sellers have little to no options for lowering the value of this digital asset, particularly with the recent strong recovery.
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Bulls still retained control over the market, even after it dropped below $25,000 the first time in over a year. This shows that bitcoin was likely at its lowest point when it reached $24,000. The strength that has shown to rebound from that point indicates that it still has some momentum.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
The digital asset is now green according to the 5-day moving mean. Although this indicator is not as powerful as the 50-day equivalent, it still signals a return to bullish sentiment. This indicator may continue to show a return of bullish sentiment among investors if the bottom is at $24,000. If that continues then recovery toward the $35,000 mark could be possible.
Bitcoin outflows grow
When the bitcoin price was falling, outflows from central exchanges for bitcoin were on the rise. The outflows would eventually overtake the inflows, but this was temporary.
The last 24 hours have been outflows from centralized exchanges had reached as high as $3.5 billion. For the same period, this exceeded inflow volumes by at least $190 millions.
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This is a sign that investors are beginning to profit from the lower prices after the crash. When assets are reduced in value over a relatively short period of time, accumulation trends such as these can be expected.
For the time period May 11th through 12th, outflows from central exchanges were approximately 168,000 BTC. That’s a large amount in light of the current bear trend. Long-term investors are taking advantage of the lower prices, even though BTC is still flowing into exchanges.
Featured image by BBC. Chart from TradingView.com