The price of Bitcoin has been in a downward momentum since the middle of April. It was briefly seen to go below $30,000 and is now trading at $32,623 (at the time of writing).
Despite the constant ups and downs in BTC’s price, one analyst is of the opinion that this prominent correction may have prepared the markets for a major bounce.
According to recent reports, many entities have been accumulating Bitcoin since its price dropped. The accumulation is reportedly led by BTC Whales. This has worked out in the favor of the flagship crypto asset in one way or another.
However, it will only be clearer with time whether a major bounce for Bitcoin markets can be expected or not?
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Why Could There be a Possible Bounce Back?
According to the analyst, there are a few reasons why the BTC markets can experience a major bounce. One of those reasons is that the trend and momentum of the market have been reset completely. There are a few price regions that Bitcoin has to reclaim first before it can come out of the downward trend.
However, there are several other reasons that not only give hope for a major bounce but also solidify Bitcoin’s position, despite price volatility.
Here are some of the reasons to know:
- Elon Musk recently stated that his companies, Tesla and SpaceX hold BTC and will not be selling any time soon.
- Musk, himself does not intend to sell the BTC he owns. This made quite an impact on the market.
- Bitcoin gained 10% as a result of the FOMO-driven pump that occurred after the announcement.
- The crackdown by Chinese authorities has opened new doors for the flagship cryptocurrency and miners. This has generally been taken as positive news by the industry experts.
- The China crackdown has led miners to settle in crypto-friendlier countries, where they can use renewable energy sources to mine BTC. This has not only been beneficial for the environment but is also expected to add to BTC’s value.
The anticipation of a major bounce back for BTC markets is also dependent on what the market will experience in the next few days or weeks. After experiencing a downward momentum for a long time, a big break is often just around the corner.
What Should the Bitcoin Investors and Traders Know?
The price of the flagship cryptocurrency has been quite volatile since the last month. It has been an uncertain time for some Bitcoin traders as well as people who have been interested to invest in BTC.
Here is a graph by CoinGecko that shows the price volatility of Bitcoin.
This has been an ambiguous scenario for the traders, however, several entities have made noticeable investments in the largest crypto asset. It has been reported that several companies including ARK Invest have been accumulating Bitcoin, which can be beneficial for the price of the crypto asset.
Therefore, if you also want to invest in BTC, make sure you opt for some of the top and suitable crypto exchanges.
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