Amid rising stablecoin inflow, cautious traders fear a dead cat bounce

The recent extreme volatility in the cryptocurrency market following Bitcoin’s (BTC) dip to $30,000 and the recovery to $38,000 has traders confused about whether the current price action is a ‘dead cat bounce’ which will see token prices head lower or a solid reversal that will set the floor for the next leg higher for the market.

While BTC price still remains more than 40% below its all-time high of $64,863, bulls have managed to weather multiple attempts to significantly break below support at $36,000.

4-hour chart. Source: TradingView
BTC exchange inflows. Source: Delphi Digital
Number of accumulation addresses. Source: Glassnode
BTC price oscillations around S2F model. Source: PlanB
Stablecoin circulating supply. Source: Delphi Digital