Bitcoin: What Wikipedia won’t tell you about BTC’s recovery to May levels

ambcrypto.com:

Bitcoin [BTC] is back above $23,000 for the first time since 13 June, thanks to a strong bullish performance in the last seven days. Eagle-eyed BTC enthusiasts may have noticed that the latest rally pushed Bitcoin out of its narrow range where it had been locked for four weeks.

The next critical level for BTC to contend with is above $28,000. However, are market conditions in favor to drive the coin to its next critical level? Let’s find out.

Bitcoin’s latest performance suggests that investors are now dealing with the ‘fear of missing out’ on Bitcoin.

Additionally, the Fear and Greed index was at 31, which still stands in the fear territory, but can be considered a massive improvement from last month.

For context, the same index was in the extreme fear territory and stood as low as nine roughly four weeks ago.

However, an improvement in the score doesn’t necessarily mean there is enough demand to push BTC back to previous levels.

There were heavy outflows from 3IQ Coinshares and Purpose BTC ETFs during Bitcoin’s sharp crash in the second week of June. The same ETFs have maintained relatively low activity since then, but their accumulation would likely fuel recovery to May levels.

Source: Glassnode

We have to factor in that strong demand may also come from elsewhere. Exchange inflows and outflows may provide a rough idea of the level of demand for Bitcoin currently in the market.

As per data from Glassnode, exchange outflows increased from 14,542 BTC to 42,390 BTC between 16 and 19 July. On the other hand, exchange inflows increased from 16,313 BTC to 39,329 BTC during the same period.

Source: Glassnode

Exchange outflows have notably been higher than inflows. However, the gap between exchange inflows and outflows was relatively