Bitcoin Reclaims $27,000, Here Are The Factors Driving The Recovery
May 15 2023 - 4:00PM
NEWSBTC
Bitcoin began another recovery trend over the weekend and
has been on a bullish path since. This follows last week’s
incredible bearish movement which saw the digital asset drop below
the $26,000 mark for the first time in over a month. However, the
bulls are beginning to pick up steam once more, but what could be
driving it? Bitcoin Accumulation Continues Now, while the decline
in prices may have been a deterrent for some, others had taken the
opportunity to fill up their bags. The ‘Wholecoiner’ movement
consists of Bitcoin supporters who aim to get their holdings to at
least 1 BTC, making a whole coin. Related Reading: Total Number Of
Shiba Inu Addresses In Profit Drops As Market Braces For Impact
This trend has been rising over the last few years and recently hit
an important milestone over the weekend. As of today, there are now
over 1 million addresses that are holding at least 1 BTC for the
first time in history, data from on-chain aggregator Glassnode
shows. Addresses holding at least 1 BTC cross 1 million | Source:
Glassnode The new milestone was reached at a time when
cryptocurrencies in the space were bleeding, presenting a unique
opportunity for investors to get in at lower prices. The
expectation of better prices from here on out, as well as the
uncertainty in the banking industry, has also been a driver in this
accumulation trend. Naturally, when investors are accumulating
coins as they are now, it reduces the supply in the market. A
reduced supply creates scarcity and this scarcity can lead to
higher prices. So such as scenario could be what played out during
the weekend. BTC price recovers above $27,000 | Source: BTCUSD on
TradingView.com BTC Investor Sentiment Is On The Rise As the price
of Bitcoin declined over the last week, investor sentiment went
down with it, causing the Crypto Fear & Greed Index to fall
below the 50 level once more. While the index still remained in
neutral territory, it was bearish given that just a couple of weeks
ago, the index was sitting at high greed. Related Reading: Does The
Bitcoin Price Dump Signal The Start Of Another Bear Market?
However, as BTC’s price has bounced back, sentiment has followed
suit. The index is now sitting at a neutral score of 50. This puts
the bears and the bulls at a stalemate, meaning each side would
have to show higher strength than the other to swing it in their
favor. Despite not being back in green, it is an improvement from
yesterday’s score of 48, which was dangerously close to plunging
the investor sentiment back into the fear territory. If BTC manages
to maintain its current recovery trend, then investor sentiment
will grow increasingly positive. However, support at $27,000 is
still quite shaky and this means bears could easily take over the
market, especially if momentum falls. Follow Best Owie on Twitter
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Featured image from iStock, chart from TradingView.com
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