Bitcoin investors brace for a short-term bullish bounce for these reasons

ambcrypto.com:

The Bitcoin [BTC] tide is changing once again after starting the week on a very bearish note. This time it looks like we might just get a bit of a relief rally. This is especially now that whales are re-accumulating after a noteworthy discount.

BTC whale activity increased in the last two days according to a CryptoQuant analyst under the pseudonym maartunn. The analysis takes note of increased BTC transfers from all exchanges to derivatives exchanges flow mean. According to his analysis,

“A higher or increasing amount shows more whales are depositing on derivative exchanges.”

Source: CryptoQuant

Of course, whale accumulation is bound to trigger an increase in buy pressure and a subsequent price pump. This might explain BTC’s mid-week bounce back from its 7 September low of $18,510 to $19,285. The latter also aligns with July support levels.

There are other factors supporting BTC’s current upside. For example, the dollar index has experienced a significant pullback in the last 24 hours after briefly being oversold.

Many investors have been using the greenback as a go-to when the commodities markets crash. Traders are, thus, bound to start using their cash reserves when the dollar index starts showing signs of weakness.

Short-term equity rally into CPI data release next week? pic.twitter.com/4ALJkNlHiY

— Lark Davis (@TheCryptoLark) September 7, 2022

BTC’s slight recovery unsurprisingly comes after a brief dip into oversold territory. It, thereby, makes sense that a flow of liquidity from the USD to BTC is observed.

On the on-chain side of things, we can see higher inflows than outflows. Receiving addresses