Bitcoin (BTC) Recovers to $34,000 as Analysts Insists Crypto Winter Won't Repeat Again

June 23, 2021 6:54 AM EDT

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Bitcoin (BTC) price is trading around the $34,000 mark or 4.5% higher on the day after hitting a 6-month low of $28,808 yesterday.

Some industry experts believe BTC is likely to recover from here.

“We are far from a bear market, only traders are freaking out over technicals seen on exchanges like volumes and price action. All the network fundamentals are bullish, most of all we are at all-time highs of new user growth,” said analyst and statistician Willy Woo.

The most recent dip in price has been attributed to crackdown on miners in some of the biggest regions in China.

“Recent news on the China mining shutdown is very reminiscent of China every few years. They’ve banned banks from using bitcoin, but this is actually different. I’ve never seen an exodus like this before,” said Darin Feinstein, founder of bitcoin mining company Blockcap.

“Much of this downward momentum in bitcoin’s price has been ascribed to China’s latest moves with mining that have led to a lower global hashrate. While long-term bitcoiners view this as an extremely positive move for the network ... short-term traders are spooked by uncertainty,” adds Jason Deane, an analyst at Quantum Economics.

Bitcoin dropped over 11% on Monday to pave the way for yesterday’s plunge lower, before the buyers were able to stage a u-turn and force price action to close 2.8% higher on the day.

“Markets are often driven by momentum which can sometimes overwhelm fundamentals and the current sentiment seems to reflect that this is what we’re seeing here,” adds Deane.

Crypto bears have been describing recent price action as a repeat of the 2017/2018 scenario when the BTC peaked in December before plunging over 70% in the next two months.

“We may never see another crypto winter again,” said Mati Greenspan, portfolio manager and Quantum Economics founder. “There’s a lot more utility, adoption, and diversification in the industry than we had in 2014 or 2018.”

For others, this is normal behavior characteristics for Bitcoin.

“It definitely fits the pattern of crypto assets rising well above previous all time highs, then settling into a new normal for a few years to come while builders continue to innovate on the technology front,” said Auston Bunsen, co-founder and CTO of QuikNode.

Despite a recovery in prices, BTC is still down about 9% in June.

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