What will happen to bitcoin? Is it the right time to invest and buy BTC?

The new week brought good news for the price of bitcoin. After the digital asset struggled to hold above $20,000 for much of the past month, the digital asset finally found a much-needed breather at the end of the weekend. This new uptrend is a sign of good things for the market going forward. However, the question remains whether the bottom has been reached and the downtrend is finally over.

Bitcoin returns to $22,000.

With the price above $22,000, Bitcoin investors have had a lot of glee so far. This new price point follows many bullish and bearish trends. Read also: Ethereum: An Incredible 200% Increase Expected Due to Reduced Gas Fees for ENS Domain Registrations!. But this is mainly due to the fact that the market is returning to the appearance of normality after the main platforms declared bankruptcy. This has led to investors resigning themselves to the fate of these suffering platforms and looking to the future.

Related Reading | Bitcoin mining difficulty drops for the second time in a row

The return to some normalcy was accompanied by a bullish hoarding trend among investors. An obvious example is the number of investors who hold more than $1 billion in their accounts. That number hit a new high early Monday morning, with 1,557,225 addresses holding more than $1 billion in accounts, according to Glassnode.

This accumulation trend is undoubtedly one of the driving forces behind the recovery in prices. Others include the Ethereum merger, which caused massive growth in the market, influencing the prices of others in the process. crypto-currencies.

Has the bottom of the barrel been reached?

This rally has sparked speculation that bitcoin has finally reached its all-time low, which at current rates looks like it was hit last month at $17,600. If so, the future of the digital asset could be marked by yet another recovery. Read also: This is why the Shiba Inu cryptocurrency could drop even more while Bitgert could rise 100x!. However, it is not so easy, especially considering that the cryptocurrency has exited the bull market earlier.

Related Reading | Here’s Who Is Driving Bitcoin’s Recovery To $22,000 According To Open Interest Data

Cryptocurrency bear markets are infamous for the associated price drops. An example is the 2018 bear market, when the price of bitcoin fell by about 84% from its all-time high. This was the case during the previous bear market in 2014, and it has become an expected trend.

Under these conditions, with the price of bitcoin still managing to maintain a value of more than 25% from its all-time high, the likelihood that the absolute bottom has not yet been reached still hangs over the market. Since the price of bitcoin is following a historical trend, the digital asset would need to drop to at least $13,000 to meet these conditions. Otherwise, it is quite possible that this recovery is temporary and that more downturns are ahead of us.

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Be vigilant and consult your financial advisor before making any investment decision. Mirror-Mag cannot be held responsible for unsuccessful investments. Before using any third party service, you should do your own research.

Thomas Estimbre
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