The crypto market capitalization reached 828.74 billion dollars, appreciating 5.93% in the last day, rekindling the hopes of analysts. One analyst said that as far as the macrocycle goes, BTC seemed to be pretty close to bottoming out. Analyst Ecoinometrics suggested, however, that the bad news could still affect Bitcoin.
The cryptocurrency bear market has analysts stumped, but recent short-term gains in Bitcoin and altcoins have revived investor hopes.
The global crypto market has been in an extended downtrend, with prices of major cryptocurrencies shattered following the FTX crash. The two main currencies, Bitcoin and Ethereum, have fallen more than 20% and 30%, respectively, throughout this month.
While the short-term gains offered the market some relief in the bear winter, there are few clear catalysts for a price rise in the near future. However, this has not deterred analysts from speculating whether the bear market is drawing to a close.
The crypto market capitalization is now at $828.74 billion, appreciating 5.93% over the last day, fueling the hopes of some traders.
Crypto Market Recovery: What Do the Cards Say?
Analyst and pseudonymous trader SmartContracter told his 214,000 Twitter followers that macro-cycle wise, BTC seemed to be pretty close to bottoming out. Bitcoin price near the bottom could mark the end of the bear market.
Based on his thesis on BTC’s three-day chart, the analyst believed that the price was starting to look like a trailing diagonal was forming to end the bear market’s ABC pattern.
Analyst RektCapital told his 330,000 followers that bearish contagion had become a historical trend. It occurs near the absolute bottom of the BTC bear market.
He further said that in previous BTC cycles, it was Bitmex that caused the crash. Before that it was Mt Gox, and this time it’s FTX.
Analyst On-Chain College looked at the BTC Mayer Multiple charts to highlight periods where Bitcoin was oversold compared to its 200-day moving average. The analyst said that those periods are marked by fear, despondency, and anger.
The analyst also added that such periods have historically provided some of the best long-term value zones from which a positive bounce has occurred.
Analyzing the Bitcoin Price Bottom
Analyst TradingShot, in a TradingView post, highlighted that two weeks ago, BTC saw the strongest weekly volume in over a year. The same could indicate an uptrend reversal.
The analyst noted that, on a weekly chart, a drastic increase in volume tends to be associated with trend changes on the Bitcoin chart. The increase in trading volume between November 19, 2018, and May 13, 2019, was the bottom formation of that bear cycle.
However, analyst Ecoinometrics suggested that bad news could still affect BTC in certain stressful financial conditions.
He tweeted that, “over the past 13 years #Bitcoin has only experienced tight financial conditions a handful of times. So it is hard to tell how it is likely to react.”
Thus, Ecoinometrics expects more bad news to come up.
By Audy Castaneda
