Bitcoin has now embarked on another recovery trend as it once again marked its position above $30,000. This is a welcome development after the market has endured various crashes that have sent investors into panic. However, while investors breathed a sigh of relief as the digital asset began to recover, other concerns have emerged in the market, including whether the uptrend will continue and whether Bitcoin has bottomed out.
Does it mark the bottom?
The recent rally suggests that Bitcoin has either bottomed out or may be falling further. But there are still some indicators that may indeed have bottomed out.
One of them is that the Bitcoin RSI is still in solid oversold territory. Now, with this indicator in the region, there is not much sellers can do to further reduce the price of the digital asset, especially with the strong recovery that has just been recorded.
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Even after falling below $25,000 for the first time in more than a year, the bulls have not completely ceded control of the market to bearish opponents. This suggests that by the time Bitcoin hits $24,000, it may have bottomed out, and the strength of the bounce from this point suggests there is a little more momentum to push it further.
BTC price recovers above $30,000 | Source: BTCUSD on TradingView.com
Coincidentally, the digital asset has now turned green at the 5-day moving average. The indicator may not be as big as its 50-day indicator, but it still shows that investor bullish sentiment is returning. If this continues and a bottom has actually been marked at $24,000, a rally towards $35,000 could soon follow.
Bitcoin outflows increase
While the price of the digital asset has fallen, outflows from Bitcoin centralized exchanges have been increasing. This will prove to be only a temporary problem, although outflows have begun to replace inflows again.
In the past 24 hours, Centralized exchanges see up to $3.5 billion in outflows. This represents an increase of at least $190 million over inflows over the same period.
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This suggests that investors are again starting to take advantage of the low prices seen during the crash. Such a cumulative trend usually occurs when the value of an asset is reduced in such a short period of time.
Centralized exchange outflows of around 168,000 BTC recorded between May 11 and 12, which is a large amount considering the current bear market trend. While BTC continues to flow into exchanges, long-term investors appear to be taking advantage of these cheaper prices.
Featured image from BBC, chart from TradingView.com