Bitcoin Breaks 2021 Pattern with Steady Recovery
Bitcoin has been on a steady recovery path since its June low, gaining 44.2% to around $84,400. This increase is greater than the average of historical recoveries from lows, which is around 29.7%. However, the drop in June was approximately 53.06%, a magnitude that historically has been followed by lower price levels.
The 2021 pattern seems to be resurfacing as Bitcoin's MVRV (Market Value to Realized Value) stood at 1.10 at the June bottom, which is less than the 1.55 seen in 2021. This could potentially reduce pressure on Bitcoin to continue rising.
Despite this, institutional demand seems to be supporting buyers, with weekly ETF inflows reaching $2.39 billion and monthly flows exceeding $2.7 billion. As exchange reserves decrease, the available supply tightens, limiting selling pressure as prices rise.