49
views

Bitcoin Bounces Back to $58,000 – Showing Signs of Recovery

Bitcoin started a week with a bang, recovering from last week’s selloff, as markets show clear signs of recovery.

The price of the largest crypto soared 6% on Monday, reaching a high of $58,000. It has since settled slightly below that level, at $57,750.

The jump made up for the last week’s dip, prompted by the new, potentially vaccine-resistant COVID variant.

Last Friday, Bitcoin dropped more than 9%, trading as low as $53,549 at one point. The sellout was due to the discovery of the new Omicron COVID variant. The uncertainty associated with the variant prompted a betrayal in risk assets. At the same time, investors fled to safer assets such as bonds and the dollar.

Other cryptos also dropped on Friday as well. Ethereum, the second-largest crypto, fell 10%. The crypto is powering the intelligent contact blockchain traded below $4000 at one point.

However, on Sunday, crypto markets rebounded. Bitcoin recovered some of its losses, bouncing back over 7%. The rally seemingly invalidated the bearish scenario for cryptos.

Many crypto traders believe that Bitcoin works as a “digital gold” – a hedge against inflation.

However, like all other cryptos, it is also very volatile. This volatility could still be too much for many investors looking for a hedge. That is why other investors still consider it a risk asset and why the selloff happened. Traders expected holders to start liquidating their positions in light of the worsened economic outlook.

Still, markets are indicating a renewal of optimism today. Funding rates are climbing, which signals that more traders are taking long positions in Bitcoin.

Despite the surge, Bitcoin still fails to break out above the significant resistance at $60,000. The largest crypto is still trading at 15%, below the all-time high of $68,521.

Whale Buying Spree

However, traders can be happy with some long-term bullish indicators.

More reassuring news comes in the form of one of the giant whales out there going on a BTC buying spree. The owner of the third-largest Bitcoin wallet bought nearly 1000 BTC just as the crypto markets were crashing.

That particular whale did not believe that BTC was entering a bear market. So instead, he took advantage of the dip, making his 11th BTC purchase this month.

While the wallet may belong to one of the major exchanges, the buying pattern indicates otherwise. Instead, an anonymous crypto trader said the whale showed strategic “buy the dip” and sell the rally behaviours.

The whale is currently holding 114,999 BTC, worth $660 million at this time.

40 Million BTC Wallets

Good signs are coming from smaller wallets as well. For example, the number of wallets holding at least one Satoshi is now above 40 million.

One Satoshi is the smallest unit of the transaction on the Bitcoin blockchain. It is equivalent to 0.00000001 BTC, or 0.0005757 USD.

About 20 million addresses own at least 0.001 BTC or $57 in the crypto. This number nearly doubled from 2019.

It is important to note that the number of addresses doesn’t necessarily equate to users. This is because users can have multiple addresses. They often do, for security reasons.

Bitcoin live price
Btc
Bitcoin
$42.319
price
2.19628%
price change
BUY NOW

However, it is still likely that the increase reflects greater adoption by the users, especially by retail investors. Greater adoption could mean a potential upside for crypto in the future.

Stay up to date with our latest articles