Bitcoin
Has Bitcoin bottomed out yet?
As Bitcoin alongside the whole market keeps going down there’s a question in everybody’s mind: are we at the bottom yet? This is not a pessimistic question at all. We all know that the market will recover sooner or later, but we also know that won’t happen until it reaches rock bottom. So what answers do we have?
Well, there are no sure answers, but technical analysis can bring some light into the question and, maybe, guide the way.
Some twelve hours ago, Bitcoin was at around $4100 and the chart allowed to apply a model called “cup and handle.” Without going into technical and mathematical detail, this model is a prediction that says the price will go down as if rolling down inside a bowl, reach the bottom, and then go back out rising on the bowl’s opposite side. One of the most popular projections using this model extends from today until next March (that would be the time at which the market will be steadily rising again).
According to the “cup and handle” Bitcoin still has a long way to go down. Probably as low as 3000.00 USD before it will bounce back and rise again. At this point, it should skyrocket.
The next pertinent question would be how accurate is the “cup and handle” model. Well, the thing about technical analysis is that it is has nothing to do with certainties but with probabilities. Nothing is written in stone, the best you can say about it is that it’s likely.
Some analysts give this prediction a probability as high as 70%, but the truth of the matter is that we still lack enough relevant data to support it. And that’s one of the reasons why buyers are staying away from bitcoin and sellers dominate the market. There’s just not enough data about the long-term to make an educated choice.
One thing that’s been materializing over the last half a day is that Bitcoin has been going down very quickly. It’s at $3,739 as we write this. Since it’s broken so many psychological barriers this year, it’s quite likely that it will keep going down and hit $3,000 some time not too far in the future.
It could even be this week, but there’s no way to know. It keeps going down as we write this article, so the answer to the article’s question is, quite clearly that no, we have not gone all the way down yet.
The good news is that the Bitcoin market shows signs of maturity, even as it plummets. The current BTC trading volume is of roughly 6.5 billion, and it remains the most traded asset with a market share of 54%. It’s expected for this share to go up to 57% as it keeps losing value and people traders try to get rid of their bitcoins.
Just to finish, don’t let your wishful thinking get the best of you. Bitcoin (BTC) could bounce back at any moment, but for the trend to be broken, a change in price is not enough. It has to be accompanied by a massive increase in trading volumes.
Until both things happen at the same time, any rise in Bitcoin price will be fake, just a natural market fluctuation that will be meaningless regarding the bigger picture. So just be patient and disciplined. Keep watching the market. It will bottom out, and the right time to get in will come soon.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image Courtesy of Pixabay.
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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