Bitcoin Bounce Is About To Happen, This On-Chain Data Spectacle

Bitcoin is having a slow “Uptober” compared to how it recovered during the same month last year.

According to online crypto data provider Statmuse, the largest cryptocurrency by market cap ended October 2021 with an average price of $58,051, peaking at $66,890 on October 21.St. Day of the month.

But bitcoin is in a different space right now, as for the first 12 days of the month, it averages $19,516, reaching its monthly high on October 6 when it hit $20,408.

At the time of publication, according to follow-up Coingeckothe digital currency is trading at $19,108, down 5.2% from last week.

As the asset remains in a narrow range of price fluctuation, investors, analysts and experts are waiting if a bitcoin bounce is about to happen.

Bitcoin ready to recover?

While the cryptocurrency is struggling to hold onto the $20,000 marker, on-chain data indicates that Bitcoin is on track for a short, strong rebound soon.

One indicator to keep in mind is the trading volume of cryptocurrencies. Despite being affected by what is now known as a “crypto winter” and bear market, BTC showed spikes in its daily and weekly averages.

Image: Yahoo Finance

At the time of writing, bitcoin trading volume is $22.1 billion. According to CryptoQuant, a spike in this indicator could hint at a bull market.

It is not uncommon for an asset’s trading volume to rise even during bearish spurts and BTC is showing the crypto space once again that not everything goes down when the market is painted red.

Bitcoin Bull Market: A Year Away?

After the month of March this year, the original crypto has achieved at least four rebounds due to significant price drops.

CryptoQuant believes that if it can sustain increases in its trading volumes and averages, Bitcoin will be in a good position to make another rally, although it will still not be able to compare to what it did in October 2021.

As for the asset’s bull market, Midas Touch Consulting Managing Director Florian Grummes shared some alarming information that may dampen the hopes of investors looking for a more favorable market position.

The official believes that a bull market for bitcoin is not yet expected for at least a year, as the cycle is not over yet.

Earlier this year, Grummes said that Bitcoin could be in a position to test the $6k price marker in a worst-case scenario as the crypto market faces a liquidity crunch.

He predicts that BTC will halve in May 2024 and will be immediately followed by a bull market.

BTC market cap at $364 billion on the daily chart | Featured image from My Basketball Teacher, Source: TradingView.com

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