Bitcoin may have bottomed out – The worst may be over for the Crypto markets

[emmaglory5]

Bitcoin may have bottomed out – The worst may be over for the Crypto markets



Bitcoin soared above $22,000 and Ether above $1,500 on July 18, raising hopes that the worst may be over for the cryptocurrency markets. Bitcoin’s recovery started on July 13 even as the United States inflation in the month of June hit a 40-year high of 9.1%, much higher than economist expectations of 8.8%, according to Refinitiv.

The recovery in Bitcoin and Ether on July 18 pushed the total crypto market capitalization above $1 trillion for the first time since June 13, according to coinmarketcap data.

Does the recovery mark the end of the bear phase in Bitcoin? Market intelligence firm Glassnode believes that a “genuine bottom formation could be underway” but more sideways action is likely in the next few weeks.

In their latest newsletter, Glassnode said that the realized price, the value of all Bitcoin at the price they were bought, divided by the number of Bitcoin in circulation, is a reliable metric to signal a bear market bottom. During previous bear markets, Bitcoin has spent an average of 197 days below its realized price while it has only clocked 35 days below its realized price during the current bear phase.

On similar lines, fund manager Grayscale said in a recent report titled “Bear Markets in Perspective” that Bitcoin moves in market cycles that last approximately “4 years or 1,275 days.” According to Grayscale, the current 2020 cycle completed 1,198 days as of July 12. This means Bitcoin “ may see another 5-6 months of downward or sideways price movement.”

Although on-chain data suggests that Bitcoin may have started a bottoming formation, the Bitcoin whales have not yet sprung into action. BlockTrends analyst Caue Oliveira said in a Twitter thread that institutional activity could be tracked by monitoring the “transactional volume moved over a short period of time.” Large transactions have been absent after the month of May, barring the period when Terra LUNA collapsed. Oliveira added that “whales remain in hibernation, waiting for the right moment to take up.”

Could Bitcoin price bottomed out and major altcoins remain stuck in a range or is a short-term rally possible? Read our analysis of the major cryptocurrencies to find out.

[hatshepsut93]

Just because the price bounced to a higher level, doesn't mean that it won't drop back. Usually analysts proclaim a trend shift after some time - a few weeks or a few months, depending on the asset type. Bitcoin is so volatile, that you can only be certain about claims like this after a long time. Every bear market has dead cat bounces, and every bull market has corrections.

I wouldn't expect a bull run in this year, maybe not even in the next year. View the current bear market as an opportunity to accumulate coins, rather than horrible times of losses.

[DOH!]

The market is in a better position to ignore the fear scenario, which proves bitcoin cash flow adoption is back but doesn't mean the bull cycle will return any time soon, although I have some doubts.  suspect that will be faced with the hypothesis, the prediction can create a false green wick.  We better keep faith in bitcoin's chances of being accepted.  17k5 if bottom, I think it's reasonable that we see a longer holding period of 23k-25k.  I think maintaining a sustainable bullish structure hasn't happened yet and it's a good opportunity to capitalize on and build a plan.

[Husires]

I will not be convinced that the worst is over and that the bottom is at 17K unless we return to levels above $32,000, which has been a strong resistance level for a long time, any level lower than that means we are below 20K.

The recent rise will not be positive unless it breaks 23800 and the price continues to rise to break 28k dollars.

[Oasisman]

I will not be convinced that the worst is over and that the bottom is at 17K unless we return to levels above $32,000, which has been a strong resistance level for a long time, any level lower than that means we are below 20K.

The recent rise will not be positive unless it breaks 23800 and the price continues to rise to break 28k dollars.

I second this.
I'd be convinced If Bitcoin touches $30k. If that happens I'm kinda positive that Btc may either have another run (which I don't think it would be the case for the current global economic crisis we have) or it would at least roam around that range or reach even at $40k.
What we're seeing right now might only be a dead cat bounce.
Btc is currently at $23,500 though.

[Minecache]

Bitcoin has dropped from $69k to $20k and now bitcoin is only up to $22k. People have started saying that the downtrend is over and the uptrend is coming. Many people have mistakenly thought and will pay a very heavy price if they are not sober at this time.

I will not be convinced that the worst is over and that the bottom is at 17K unless we return to levels above $32,000, which has been a strong resistance level for a long time, any level lower than that means we are below 20K.

The recent rise will not be positive unless it breaks 23800 and the price continues to rise to break 28k dollars.

Unless we break through the $30k resistance, we have every right to believe the worst of the bear season has passed, and everyone can think of something brighter.
Bitcoin is trading at $23k and it could still drop back below $20k anytime, the gap is not too far away.

[kotajikikox]

The market is in a better position to ignore the fear scenario, which proves bitcoin cash flow adoption is back but doesn't mean the bull cycle will return any time soon, although I have some doubts.  suspect that will be faced with the hypothesis, the prediction can create a false green wick.  We better keep faith in bitcoin's chances of being accepted.  17k5 if bottom, I think it's reasonable that we see a longer holding period of 23k-25k.  I think maintaining a sustainable bullish structure hasn't happened yet and it's a good opportunity to capitalize on and build a plan.

so we are now in closing at that 23-25k position  , bitcoin is climbing to 24k this moment and maybe there is something that we should take a look but never to expect  too much because market cycle cannot penetrate that much as long as the world is facing this heavy economic dropping.
find option to buy and hold that selling in this dumping part.

[Fundamentals Of]

The worst may be over. The worst may yet to come. The bear season may have bottomed out or we might still be in the middle of it right now. We cannot tell. The 4-year cycle pattern will tell you that this whole year might be bearish for Bitcoin. This price increase right now may tell you that there's now enough reason to believe that Bitcoin is already on the road to recovery. So Bitcoin could still go either direction. But this small rise in Bitcoin's price could fuel positive sentiment which brings it further toward $25,000.

[Silberman]

Just because the price bounced to a higher level, doesn't mean that it won't drop back. Usually analysts proclaim a trend shift after some time - a few weeks or a few months, depending on the asset type. Bitcoin is so volatile, that you can only be certain about claims like this after a long time. Every bear market has dead cat bounces, and every bull market has corrections.

I wouldn't expect a bull run in this year, maybe not even in the next year. View the current bear market as an opportunity to accumulate coins, rather than horrible times of losses.

I concur, without a doubt I'm happy that the price has shown a positive movement but it is simply too early to think that what we saw is the bottom, I remember the previous crypto winter and there were several instances in which it seemed as if bitcoin was going to go up in value relatively fast only for this to not be true, so it is important to keep our expectations in check so we do not invest more money than we cannot afford to lose in bitcoin and then you are forced to sell your coins for a huge loss.