{"id":962,"date":"2021-06-07T09:25:32","date_gmt":"2021-06-07T08:25:32","guid":{"rendered":"https:\/\/tradersofcrypto.com\/news\/?p=962"},"modified":"2021-06-07T09:25:33","modified_gmt":"2021-06-07T08:25:33","slug":"bitcoin-btc-three-bullish-factors-help-crash-recovery","status":"publish","type":"post","link":"https:\/\/tradersofcrypto.com\/news\/bitcoin-btc-three-bullish-factors-help-crash-recovery\/","title":{"rendered":"Bitcoin (BTC): Three Bullish Factors Help Crash Recovery"},"content":{"rendered":"##\n<p>Bitcoin (BTC) is taking a breather following the recent <a href=\"\/news\/btc-altcoins-seek-direction-before-miami-conference\/\">Miami conference<\/a>. The asset established itself above $36,000, moving sideways for days. On Monday, altcoins recovered with more strength, led by <a href=\"\/news\/defi-leads-in-market-recovery-as-tvl-rises-to-65-billion\/\">DeFi coins and tokens<\/a>. Ethereum (<a href=\"\/coins\/ethereum\/\">ETH<\/a>) moved again near the $2,800 range. The BTC market cap dominance shrank to 40.9%, near the indicator\u2019s two-year lows.\u00a0<\/p>\n\n\n\n<p>At the same time, BTC continues to lead, with renewed bullish factors potentially boosting the market in the second half of the year. For one, the trend of accumulation has been renewed after the market capitulation at the end of May.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Long-Term Holding Indicators Remain Strong<\/strong><\/h3>\n\n\n\n<p>There is a noticeable withdrawal of coins from exchanges, all happening in the span of a few days. The recent price crash tested the recently acquired coins, as some of the buyers may be under the water.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Exchange flows have flipped back into accumulation. <br><br>Exchanges down -18,142 BTC ($653M) in the last 3 days. <a href=\"https:\/\/t.co\/Eg0PcqtKYw\">pic.twitter.com\/Eg0PcqtKYw<\/a><\/p>&mdash; William Clemente III (@WClementeIII) <a href=\"https:\/\/twitter.com\/WClementeIII\/status\/1401189758118813698?ref_src=twsrc%5Etfw\">June 5, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Additionally, Glassnode noted a dip in the indicator of \u201ccoin days destroyed\u201d since the end of May. This indicated a trend to hold onto coins, as the indicator spikes when big entities move BTC through wallets, or BTC gets sent to exchanges.&nbsp;<\/p>\n\n\n\n<p>Due to that trend of long-term accumulation, BTC has not broken below the bounds of the S2F model. Currently, the model suggests the price is even more promising in terms of growth, compared to the March 2020 capitulation.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> is cheaper on an S2F basis than it was during March 2020. Only at the bottom of the bear market in 2018 has BTC been cheaper. (At current S2F model prices, a .48 multiple = 31000)<br><br>Data from:<a href=\"https:\/\/t.co\/NHahafuVMT\">https:\/\/t.co\/NHahafuVMT<\/a><a href=\"https:\/\/t.co\/XLq8RLhMWu\">https:\/\/t.co\/XLq8RLhMWu<\/a> <a href=\"https:\/\/t.co\/5W9LvpeCHy\">pic.twitter.com\/5W9LvpeCHy<\/a><\/p>&mdash; Chartin Scorsese (@thechartfather) <a href=\"https:\/\/twitter.com\/thechartfather\/status\/1401705002612281347?ref_src=twsrc%5Etfw\">June 7, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Digital coins remain volatile, with the Bitcoin fear and greed index still at 15 points, suggesting more careful <a href=\"\/comp\/prizes\">cryptocurrency trading<\/a> in the short term.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Taproot Upgrade Gains Traction<\/strong><\/h3>\n\n\n\n<p>The Taproot upgrade is a series of improvements on the <a href=\"\/coins\/bitcoin\/\">Bitcoin network<\/a> to add privacy and optimize transactions. The upgrade faced a period of signaling from miners, which was initially contentious. But at the end of May, most miners signal they are ready to adopt the upgrade.\u00a0<\/p>\n\n\n\n<p>The consensus of miners, where more than 90% needed to signal in favor of the upgrade, removes the hurdle of a more protracted process. The fall of 2021 will see the upgrades and proposals go live on the network.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a>&#39;s upgrade <a href=\"https:\/\/twitter.com\/hashtag\/Taproot?src=hash&amp;ref_src=twsrc%5Etfw\">#Taproot<\/a> is likely to be locked-in by ~June 10 and active by ~October 22 as currently 94.5% of the miners signal pro-taproot \ud83d\ude80. <a href=\"https:\/\/t.co\/QhBnqwp39g\">pic.twitter.com\/QhBnqwp39g<\/a><\/p>&mdash; Root \ud83e\udd55\ud83d\udfe9 (@therationalroot) <a href=\"https:\/\/twitter.com\/therationalroot\/status\/1394605749892956161?ref_src=twsrc%5Etfw\">May 18, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The upgrade is also known as a soft fork, and will not lead to the creation of new assets or a chain split.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>BTC Proposed as Legal Tender in El Salvador<\/strong><\/h3>\n\n\n\n<p>BTC has been used as an informal payment gateway very soon after its creation, and for years thereafter. But it also had the reputation of an Internet coin, or a gamer currency. In 2021, BTC is considered a digital asset, and has official markets set up. However, BTC still does not have the status of money, and no cryptocurrency has the status of legal tender in any country or territory.&nbsp;<\/p>\n\n\n\n<p>BTC is still used through merchant gateways, under the condition of going through a KYC process for sums above a certain level, to avoid money-laundering and terrorism financing.&nbsp;<\/p>\n\n\n\n<p>But this may change, after a statement by the President of El Salvador Nayib Bukele. He plans to introduce a bill that will pave the way for accepting BTC as legal tender, making El Salvador the first nation to add a digital coin beside the function of its national currency.&nbsp;<\/p>\n\n\n\n<p>Other attempts to add a digital coin as legal tender include the Marshall Islands project of creating SOV, or Sovereign Coin. The asset however did not materialize and remained in its preliminary stage. The Venezuelan idea of the Petro also met with problems, including the creation of fake, inactive tokens of the same name.&nbsp;<\/p>\n\n\n\n<p>President Bukele went on to join the social media discussion of BTC, and even adopted the laser eye picture in support of wider adoption.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> has a market cap of $680 billion dollars.<br><br>If 1% of it is invested in El Salvador, that would increase our GDP by 25%.<br><br>On the other side, <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> will have 10 million potential new users and the fastest growing way to transfer 6 billion dollars a year in remittances.<\/p>&mdash; Nayib Bukele \ud83c\uddf8\ud83c\uddfb (@nayibbukele) <a href=\"https:\/\/twitter.com\/nayibbukele\/status\/1401335885497524226?ref_src=twsrc%5Etfw\">June 6, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The economy of El Salvador is highly dollarized, and dependent on cross-border remittances. For locals and emigrants, this means relying on the banking system, which often levies high fees for international transfers. BTC fees remain unpredictable, but the asset has been used unofficially in parallel to national currencies in many countries.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Can BTC Still Correct<\/strong><\/h3>\n\n\n\n<p>BTC is still volatile, with the possibility of revisiting the $30,000 range. Low volumes and erratic activity on weekends can undermine some of the price gains.&nbsp;<\/p>\n\n\n\n<p>BTC trading volumes are sinking below $30B per day, mostly on a slowdown in <a href=\"\/exchanges\/binance\/\">derivative trading<\/a> activity. The lower volumes can translate into more erratic price moves.<\/p>\n\n\n\n<p>Even the short-term correction, however, plays into a longer-term pattern of returning to a lower price range before a bigger rally. In 2021, interest in crypto assets is growing, and short term events may only serve as a temporary setback.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Excellent chart from <a href=\"https:\/\/twitter.com\/CaneDigital?ref_src=twsrc%5Etfw\">@CaneDigital<\/a><br> shared by <a href=\"https:\/\/twitter.com\/nsquaredcrypto?ref_src=twsrc%5Etfw\">@nsquaredcrypto<\/a><br> !<br><br>It shows:<br>1) clear <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> trend (notice the time axis is scaled)<br>2) the evolution of never look back price <a href=\"https:\/\/twitter.com\/hashtag\/NLB?src=hash&amp;ref_src=twsrc%5Etfw\">#NLB<\/a> <br>3) that both in 2013 &amp; 2017 re-tested the red line before full bull run (see blue circles I added). <a href=\"https:\/\/t.co\/eWONJDFBVN\">pic.twitter.com\/eWONJDFBVN<\/a><\/p>&mdash; Stef Air&#39; (@StefAir06) <a href=\"https:\/\/twitter.com\/StefAir06\/status\/1401441246955118592?ref_src=twsrc%5Etfw\">June 6, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>For analysts, this pattern recalls the events of 2017, when a crash was followed by an all-time high in just four months. The model also coincides with the trends of the rainbow BTC price scheme. The current stage suggests the best strategy is to hold the coins, though with some risks of dipping to a lower range.<\/p>\n##","protected":false},"excerpt":{"rendered":"<p>BTC still risks a dip to $30,000, but there are bullish factors that may drive prices in the second half of 2021.<\/p>\n","protected":false},"author":3,"featured_media":963,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2,12,6,233],"class_list":["post-962","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorised","tag-bitcoin","tag-btc","tag-eth","tag-taproot","entry"],"_links":{"self":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts\/962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/comments?post=962"}],"version-history":[{"count":0,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts\/962\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/media\/963"}],"wp:attachment":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/media?parent=962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/categories?post=962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/tags?post=962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}