Strong And Short Bitcoin (BTC) Rebound Coming Soon?
In the midst of an unfavorable macroeconomic scenario, the market is desperate for a Bitcoin rebound. In the recent weeks, the Bitcoin (BTC) price movement and trading activity has been quite stagnant. After falling from the $22,000 range last month, BTC continued to fluctuate around the $19,000 figure. Overall, a prolonged sideways movement in BTC price pattern meant huge anticipation for a rally at least in the short term.
The sluggish BTC movement comes at a time when there is a global financial instability. For close to four months now, the market marred with several setbacks has been experiencing a crypto winter situation. The downfall started earlier this year when the Terra collapse led to a crypto freefall. Since mid-June, the BTC price has fluctuated around the $20,000 mark with occasional exceptions.
On Chain Data Signals At Bitcoin Rebound?
Meanwhile, on chain data shows that the current environment is in a short term liquidity phase. According to data from Crypto Quant, the market is building up for a long and strong bull market. There are some spikes in the volume of Bitcoin in daily and weekly range. Sharp rise in this indictor could be an sign of the beginning of the bull market. This can be seen as a build-up for a long and strong bull market.
“Even during a bear market, this indicator sometimes rises, in which case Bitcoin rebound or at least go sideways.”
Short Term Rally Incoming?
Since March this year, there were four examples of the short term rebounds. There is a high possibility of at least a short term rebound if this indicator rise strongly. Meanwhile, last week saw a steady drop in BTC price from the range of above $20,000. As of writing, BTC price stands at $19,076, up 0.09% in the last 24 hours, according to price tracking platform CoinMarketCap.
In this context, experts believe a Bitcoin bull market is still not in the horizon. Florian Grummes, the managing director at Midas Touch Consulting, feels the current crypto market cycle is still about a year away. This is based on historical pattern of a crypto winter typically lasting for about 24 to 27 months.
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