Bitcoin has recovered to $31.6K, but there are signs that another BTC price drop is on the way.

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Multiple pundits believe Bitcoin will not be out of the woods until a definitive bottom formation has formed.

Bitcoin (BTC) rose to $31,600 on July 21 from its 2021 beginning price, in what some believe is only a momentary reprieve from the fall.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

“Short the bounce”?

Data from TradingView followed BTC/USD as it gained a respectable 7% during Wednesday.

At slightly above $29,000, the market began the year, bulls had effectively defended the largest cryptocurrency against further losses.

However, as previously noted, there is growing fear that current surge is merely a “relief rally,” rather than a meaningful return from a price floor.

“It’s still’short the bounce’ season,” Nebraskan Gooner, a famous analyst and podcast presenter, described to Twitter followers.

Veteran trader Peter Brandt concurred, suggesting that Bitcoin would need another shock leg down before the genuine return to form kicked in.

The latest spot volatility comes as Bitcoin network fundamentals delight market participants, these showing ever-increasing strength this month.

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Hash rate was nearing 100 exahashes per second (EH/s) at the time of writing, edging closer to all-time highs of 168 EH/s from before the infamous China mining rout.

“Bitcoin network fundamentals have never looked better,” MicroStrategy CEO Michael Saylor declared Tuesday.

Bitcoin estimated hash rate chart. Source: Blockchain

Difficulty, meanwhile, was still on track to increase at its next readjustment, despite the price dip.

Dogecoin shines ahead of Musk conference date

A positive turnaround of fortunes was still in play in altcoins, with many of the top fifty cryptocurrencies by market capitalisation seeing daily gains of nearly 10%.

Dogecoin (DOGE) was a standout, returning 14 percent ahead of proponent Elon Musk’s talk at Wednesday’s “The B Word” conference.

The event, which features Musk in conversation with ARK CEO Cathie Wood and Jack Dorsey, CEO of Twitter and payment business Square, will be watched closely by crypto players in general.

 

DOGE/USD 1-hour candle chart (Bittrex). Source: TradingView

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