Earlier this week, we saw that Bitcoin and other crypto coins were experiencing heavy currency declines. Today is different. We are looking at how the recovery of Bitcoin and other crypto coins continues. We are also looking at what signs of confidence there is in the market.
Currently: Bitcoin and crypto coins continue to rise
We were able to see on the charts this morning that Bitcoin and other crypto coins are undergoing a strong recovery. Now that we are halfway through the afternoon it appears that the recovery is continuing. Bitcoin is still more than 8% higher than this morning and most crypto coins are following suit.
The course of the cryptokruths shows the first signs of confidence. The stable coins Tether (USDT) and USD Coin (USDC) are losing. This may indicate that investors are exchanging the safe crypto coins for riskier regular crypto coins. However, there are more signs that the Bitcoin will continue to rise.
Buy the Bitcoin dip
We see that the first investors already stepped in at the end of last week. They are trying to buy Bitcoin at the lowest point. In this way, they anticipate further price rises. Simplex notes that as many as 59.6% of the investors bought Bitcoin (BTC). Tether (USDT) and Ethereum (ETH) ranked second and third with 12.6% and 9.78% of the purchases respectively. More than a third (33.29%) of investors came from Europe, leading the geographical ranking. So there is also confidence locally.
Google registers private interest
Another striking trend can be seen in the Google search results. In the search volumes we clearly see that after the historic crash last Thursday, people started looking for alternative investment opportunities. Here, too, the cryptomarket appears to be more attractive than other certainties, such as gold. The graphs below show the trend.
On the basis of the statistics it is clear where the interested investor wants to go.
Bitcoin undervalued?
As a last sign of confidence we see a technical analysis. If we compare the market value with the fair value, we see that the so-called z-score is negative for the Bitcoin. This means that the currency is undervalued. Indeed, this means that it is a bargain to buy Bitcoin right now. Of course, bargain hunters are always around to get some return, so if they haven't already done so, their investment is in line with expectations.
You need to pay attention to this when you're considering investing
Of course we hope that the Bitcoin will soon return to the values of earlier this year. This would be a good return for many of the investors who are joining us these days. On the other hand, the financial market is very unstable at the moment. We have seen in the last few days that this can lead to substantial losses. as I mentioned in my last post it's crucial that Bitcoin reaches a level of support far above its current price. From then on, the bears can take over. Otherwise, there may be shocking price drops that make recovery seem further away.
