3 reasons why Bitcoin (BTC) could recover soon

Here’s what could trigger a BTC comeback.

The leading digital asset has been stuck in a persistent bear market over the past few months, currently trading at around $64,500 (a drop of almost 50% from its ATH set last year).

Despite the negative environment and waning investor interest, some factors suggest that the bulls may soon be preparing to take over.

Positive signs

The first bullish signal comes from famous analyst Ali Martinez. Just a few days ago, he revealed on X that BTC had formed a bullish divergence on the weekly chart, noting that the last time this happened, the price exploded by over 700%.

If history repeats itself, the asset could exceed $500,000. It’s a scenario that seems almost impossible in today’s market depression, but the crypto sector has a habit of surprising investors.

The second element is the decrease in the quantity of BTC stored on exchanges. CryptoQuant revealed that this figure fell to around 2.7 million units, the lowest since late June. This development indicates that many investors have abandoned centralized platforms and moved their holdings to self-custody solutions, thereby reducing immediate selling pressure.

Finally, BSCN X Account revealed that investors holding between 1,000 and 10,000 BTC purchased 66,700 coins over the past two months, marking their largest accumulation since February. Similar developments reduce immediately available supply and selling pressure. They can also be imitated by small investors who tend to copy whales.

Has the rally already started?

The leading cryptocurrency reached $65,000 earlier today, but was stopped there and slipped around $1,000 before finding support at $64,000. User X, Crypto Catalysts, noted the resurgence, arguing that the rally towards $100,000-105,000 had begun.

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“Next move towards 70,000 and after a good correction towards 80,000 and eventually towards the main target of 100,000,” they predicted.

It is important to note that over the past few months, BTC has attempted several decisive comebacks, but the bears have intercepted each surge. It is therefore wise for optimistic investors to keep realistic expectations.