Bitcoin Rebound Is About To Happen, This On-Chain Data Show

Bitcoin

Bitcoin is having a sluggish “Uptober” as compared to how it rallied during the same month last year.

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

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

At press time, according to tracking to Coingecko, the digital currency is trading at $19,108, down 5.2% for the past week.

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

Bitcoin Ready For Bounce Back?

While the cryptocurrency is struggling to sustain the $20,000 marker, on chain data indicate bitcoin is on its way to a strong and short rebound soon.

One indicator to watch out for is the crypto’s trading volume. Despite being affected by what is being referred to now as “crypto winter” and bearish market, BTC showed spikes in its daily and weekly averages.

Image: Yahoo Finance

As of this writing, bitcoin’s trading volume is at $22.1 billion. According to CryptoQuant, an uptick in this indicator might hint a bull market.

It is not uncommon for an asset’s trading volume to rise even during bearish momentums and BTC is showing the crypto space once again that not everything about it declines when the market is painted in red.

Bitcoin Bullish Market – A Year Away?

After the month of March this year, the maiden crypto has made at least four rebounds from 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 fail to compare with what it did in October 2021.

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

The official believes a bullish market for bitcoin is not yet due for at least a year, as the cycle is yet to end.

Earlier this year, Grummes said Bitcoin could be put in a position to test the $6k price marker in a worst-case scenario given that the crypto market is facing liquidity crisis.

He predicts halving for BTC to come in May of 2024 and will be immediately followed by a bullish market.

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