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Bitcoin Just Recovered to $35,000 After Yesterday’s 25% Crash

Bitcoin Just Recovered to $35,000 After Yesterday’s 25% Crash


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Bitcoin is ripping higher despite yesterday’s correction.

The cryptocurrency plunged as low as $30,000 yesterday as buying selling rapidly picked up on platforms such as Coinbase, analysts said. This came after Bitcoin peaked at $42,000 late last week. While Bitcoin is not yet in the clear on a short-term time frame, analysts are starting to think that the bottom is in after key technical signs appear.

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

On-Chain Trends Still Bullish for Bitcoin

Aleks Larsen, a venture investor at Blockchain Capital, noted recently in an extensive Twitter thread that the on-chain fundamentals for Bitcoin are still strong.

Commenting on Bitcoin’s on-chain trends, the investor wrote:

“6/ Looking pretty good for growth rates in the HODLer segment! Nice and steady growth for BTC through the <a class=”wpg-linkify wpg-tooltip” title=”

Bear

Bear market is defined as a decreasing set of prices for various types of assets. A bearish investor wants to profit from the movement of dropping prices. You can think of a bear, swinging his big paw downward on the investment, crushing prices.

» Read more

” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear market. Retail is starting to pop in but for most of 2020 this was institutionally driven – less additional holders, but much larger position sizes.”

He elaborated that Bitcoin is currently moving $7 billion a day, which shows the value of the network. Ethereum, too, is still seeing strong usage:

“14/ BTC is moving $7B per day on-chain; ETH almost $4B. This doesn’t include tokens or stablecoins.. and stablecoins alone accounted for over $15B of on-chain transfer volume in the last 24 hours. Ethereum is moving over $20B of assets per day, most of which is digital USD!”

Analysts say that on-chain trends show the true nature of the Bitcoin market, as opposed to short-term price trends.

Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

Overall Trends Positive

Touching on the market trends aside from on-chain data, economist and crypto analyst Alex Krüger says that Bitcoin remains bullish to the most extent:

“Raw demand. Worthy of note was Grayscale reopening private placements late PM. Open interest dropped ~20% and funding rates are now flat to negative. Bullish. This is still a bull market. Bitcoin heats up very easily, and needs to wash up excesses before continuation.”

The investor did note, though, that there are a number of factors that have driven BTC lower in the near term.

These include but are not limited to:

  • A bounce in the U.S. dollar against foreign currencies
  • Extremely high market funding meant the market was overextended
  • Heavy selling pressure by miners, some long-term holdings, and others
  • Guggenheim Investments CIO Scott Minerd announcing a short-term bearish view
  • Tether fears
  • And renewed regulatory fears
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Unsplash
Chart from TradingView.com
Price Tags: xbtusd, btcusd, btcusdt
Bitcoin Just Recovered to $35,000 After Yesterday's 25% Crash





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