Bitcoin is making a quick recovery as large investors gather $2.8 billion worth of BTC, showing that they have faith in the cryptocurrency.

The leading cryptocurrency, Bitcoin, is seeing a comeback in its short-term price direction after collecting more than $2.8 billion in Bitcoin (BTC) in just one day. This surge in gathering comes after Bitcoin's price dropped to $56,555 earlier in the week, causing worry in the cryptocurrency world.

Experts, encouraged by new data, are feeling positive about Bitcoin's future despite recent price swings. One significant change is the renewed gathering patterns seen among Bitcoin's big investors.

Ki Young Ju, the creator of CryptoQuant, mentioned that big wallets making transactions in the last 24 hours have together gathered a massive 47,500 BTC during this time. These investors bought Bitcoin at an average price of $59,000, showing a strong effort to "buy the dip" with a total investment of $2.8 billion. This substantial purchase has led Young Ju to say that the market is now "entering a new era" marked by renewed trust among big investors.

Following this recent gathering, the total BTC balance held by these active big investors has risen to 498.1K tokens, up from about 450K BTC just a day earlier. This gathering highlights the significant power these prominent investors hold, now controlling a remarkable $29.38 billion in Bitcoin.

On-Chain Data Points to Bitcoin Price Recovery

In a different analysis, CryptoQuant analyst Dan looked at on-chain data to support the possibility of Bitcoin's price bouncing back. Dan focused on the actions of short-term investors, whose behaviors often impact the cryptocurrency's price movements.

Dan studied the Bollinger Band technical indicator along with Bitcoin's Spent Output Profit Ratio (SOPR) data, which helps identify potential buying and selling points based on transaction profitability. He noted that when the SOPR hits the bottom of the band during bullish markets, it signals oversold conditions and usually comes before a price rebound – a situation currently unfolding.

Moreover, Dan highlighted a drop in positive sentiment among general investors during the ongoing market correction. According to him, this decrease in market excitement suggests that a rebound might be on the way after this adjustment period, further supporting the case for short-term relief in Bitcoin's price.

BTC Demand Area Spotted at $58K

Additionally, insights from the market analysis platform IntoTheBlock shed light on Bitcoin's recent price sentiment. IntoTheBlock noticed similarities between Bitcoin's recent fall to the $56K range and past cycles in terms of the rate of holders facing losses.

Identifying the $58K range as a crucial demand area to watch, ITB suggested that if the market moves up, increased selling pressure could arise around the $62K mark, confirming the idea of imminent short-term relief for Bitcoin.

Interestingly, Bitcoin has quickly confirmed the assessments made by these respected entities. Currently, Bitcoin is trading at $61,607, showing a significant 4.28% increase from its price of $58,000 the day before.