Bitcoin (BTC) is again on the uptrend after pumping by more than 8.7% in the last day to reach its current value of $5,588.

Despite suffering huge losses throughout last week and early this week, Bitcoin appears to be recovering somewhat after climbing up from a low of $4,121 in less than a week. At its current value, Bitcoin is now up over a third, 35.6%, since reaching its bottom last week.

Bitcoin price goes back up
Looking at the price of Bitcoin. Image: Shutterstock.

Bitcoin is now at its highest value in three days, but is still down more than 10% for the week. Scaling further back, the cryptocurrency is down 45% for the month.

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+23.50%$96,879.63
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According to the most recent Chainalysis market report, Bitcoin's recent bearish price action was caused by an "unprecedented increase in sell pressure," but this might now be letting up. Between March 12 and March 13, cryptocurrency exchanges received around a 9x increase in sell pressure but the amount of Bitcoin headed to exchanges has now reduced to just twice the average.

A retrospective on the market slide. Image: Shutterstock.

Explaining the Bitcoin price collapse

Two back-to-back crashes cut Bitcoin's price in half last week. The driving force for the drop was the collapsing economy as a result of the coronavirus pandemic. But, crypto investment firm Multicapital explains what amplified the price crash. Fundamentally, the firm points the finger at cryptocurrency's flimsy market structure. Had it remained intact, say the researchers, Bitcoin would not have submitted so readily. How will Bitcoin's price crash affect the halving?  "The Bitcoin and Ethereum...

NewsCoins
3 min read
Will Heasman

Similarly, the average size transfers moving to exchanges has decreased considerably since March 13, indicating whales, institutions and other large holders are easing up—potentially giving the market some space to begin its recent recovery.

That is, unless the economy falters again.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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