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