Has Bitcoin started to recover? | Bitcoin magazine

The crypto space has been quite volatile for the past week. Just as it began to show signs of recovery after the September 20 crash, the Chinese FUD dealt another fatal blow to the market, pulling back the chaos and messing up almost all cryptocurrencies. In the top 10, they all saw a 6-10% decline. Bitcoin

This time, however, the market recovered quickly. Additionally, at the time of writing, there are some interesting trends to be seen as well.

Stablecoins on the stock exchanges are increasing

A look at the stablecoin reserves after the crash often gives an insight into what market participants are up to. Similar cumulative balances rose to new highs at the time of writing. Basically, this can happen in two cases:

• Market participants panic selling and dumping their stocks.

• Exchanges replenish inventory in preparation for the upcoming wave of buying.

The last time the amount of stablecoins held on the exchange peaked, Bitcoin’s price jumped from $ 46,700 to $ 52,700 in less than a week. So can something similar happen this time?

Source: CryptoQuant

Assess buying and selling pressure

At the time of going to press, the spread between buyers and sellers on major exchanges such as Binance, Bitfinex and Bittrex remains positive, suggesting a propensity to buy. In fact, there have been 128 bitcoins more buyers than sellers in the past hour.

In addition, the number of whale trading stores also rose from 9,900 to 16,400 in the past week. This basically means the whales are back in action.

Interesting before Bitcoin magazine reported that the third largest Bitcoin whale wallet added more than 290 bitcoins valued at $ 12.4 million on September 24th and 25th.

Bitcoin balances on the exchanges also increased. This seems to indicate a shift from stock exchanges to private purses and cold stores. In fact, the index is up 47.45% in the past 24 hours.

Source: IntoTheBlock

In addition, the futures market has picked up momentum again. For example, the transition curves from Into The Block (ITB) paint a rather optimistic picture. As can be seen from the attached graph, the curve of the major exchanges such as OKEx, Huobi and Deribit was able to successfully leave the area of ​​backwardation. Overall, they enter the contango zone (purchased contingencies) – a situation where the price on the futures market for an asset is higher than the price on the spot market.

Contango is essentially a bullish indicator. It shows that the market expects the price of the underlying contracts to steadily increase in the future. In order for Bitcoin price to gradually move north, it is important that these curves stay in the same range.

However, the broader market is very volatile right now. Although nothing is certain, the difficult state of the above indicators provides a temporary respite. The same thing leads to a notable price action.

With Bitcoin rebounding from $ 40,600 to $ 42,275 at press time, it looks like the above has translated into some notable price moves as well.

Bitcoin price chart | Source: Tradingview

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Mr. Teacher

According to AMBCrypto

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