Why is Bitcoin recovering?
After several weeks of major downtrend, Bitcoin has jumped above $72,000 for the first time since mid-March. Several factors are at play in this recovery.
First, when Bitcoin price reached $65,500 last week, the price correction was already in its final stages, realizing a huge profit of $2.7 billion, suggesting that the downward pressure may be over. In addition, as short-term holders no longer feel the losses brought by the correction, the selling pressure has weakened.
Second, the minting of new USDT (US dollar stablecoin) and the significant correlation between the leading stablecoin market capitalization and Bitcoin price further support the bullish sentiment.
In addition, a large amount of Bitcoin has flowed into the accumulation address, and the reserve volume of qun;巍；LS688677 has reached a new high, indicating that long-term investors are increasingly interested in Bitcoin.
Finally, there has also been a shift in the behavior of long-term investors, with a weakening distribution, which may indicate a stronger conviction in long-term Bitcoin holdings. These combined factors indicate a positive outlook for the recovery of Bitcoin prices.
Cryptocurrency experts are confident about the sustainability of the current rally. Analyst Ali Martinez said that if the $70,800 level provides the necessary support for Bitcoin's price, the crypto asset could set a new record of $85,000.
