Bitcoin has now started another recovery trend which has it pointing to its position above $30,000 once again. This is a welcome development after the market witnessed several crashes that caused investors to panic. However, while investors are breathing a sigh of relief as the digital asset begins to recover, other concerns have surfaced in the market, including whether the uptrend will continue and whether Bitcoin has already bottomed out.
Did you define the bottom?
The recent comeback indicated that Bitcoin has bottomed out or may be on its way to incurring further losses. But there are still some indications that the bottom may have already been reached.
One of the reasons is that the Bitcoin RSI is still severely oversold. Now, with this indicator in this area, there is not much that sellers can do to lower the price of the digital asset further, especially with the strong recovery just recorded.
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Even after falling below $25,000 for the first time in over a year, bulls have not completely given up control of the market to their bearish peers. What this shows is that Bitcoin most likely bottomed out when it touched $24,000 and the strength on display for a bounce from this point indicates that there is little momentum left to continue with that.
BTC price recovers above $30,000 | Source: BTCUSD on TradingView.com
Coincidentally, the digital asset has now turned green on the 5-day moving average. This indicator may not pack as much strength as its 50-day counterpart but it still indicates a return of bullish sentiment among investors. If this continues, and the bottom is set at $24,000, a recovery towards $35,000 may be imminent.
Bitcoin outflows are growing
Bitcoin outflows from centralized exchanges were on the rise when the price of the digital asset was falling. This may turn out to be only a temporary problem even though outflows are starting to take over inflows again.
During the past 24 hours, it was Outflows from central exchanges reached 3.5 billion dollars. This exceeded the stream size by at least $190 million for the same time period.
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What this indicates is that investors are once again beginning to take advantage of the lower prices that emerged during the crash. Accumulation trends like this are usually expected when the asset is devalued in such a short time.
Outflows from central exchanges registered between May 11 and 12 were about 168,000 BTC, which is a large amount considering the current downtrend. Although BTC continues to flock to exchanges, it appears that long-term investors are benefiting from these cheaper rates.
Featured image from BBC, chart from TradingView.com