Has The Crypto Market Bottomed After Bitcoin’s 50% Collapse?
Bitcoin and the rest of the crypto market didn’t have the best second half of 2019. Per data from TradingView, the aggregate value of all publicly-traded digital assets fell from $388 billion to a low of $166 billion — a drop of nearly 60%.
While this metric has been a clear downtrend for the past seven months (save for the past week), analysts are saying that there is a confluence of signs suggesting the bottom is finally in for crypto assets across the board, especially Bitcoin.
The Crypto Bottom is In
Cryptocurrency analyst Thies recently drew attention to a clear sign that the bottom in the cryptocurrency market is finally here. He noted that according to TradingView’s Total2 trading pair (all digital assets sans Bitcoin), “last week alone showed the highest buying volume for the altcoin markets ever recorded.”
While some say that this data masks reality in part, there is no doubt there has been a lot of buying pressure in the cryptocurrency markets as of the past week, hence the absolute explosion in the price of Ethereum Classic, Bitcoin Satoshi’s Vision, and many, many others.
New weekly for #TOTAL2 opened just over an hour ago now.
That said, last week alone showed the highest buy volume for the alt markets ever recorded on @tradingview.
As many may know, this is significant in market dynamics and suggests a true bottom established. Take note. pic.twitter.com/9wFjxAXqVy
— Crypto Thies 📈 (@KingThies) January 20, 2020
Thies argued that this is “significant in market dynamics and suggests a true bottom established. Take note.”
It isn’t only that.
Trader Byzantine General recently pointed to the below chart, which he posted via Twitter.
As he depicts, Bitcoin’s recent price action and the one-week Relative Strength Index underwent the exact same pattern they did in the previous market cycle, with there being an RSI break under 40 in a bear market, then a relief rally, and perfect re-test of 40 to find a secondary bottom before kicking off the next bull market.
Not to mention, Murad Mahmudov, CIO of Bitcoin fund Adaptive Capital, recently observed on Twitter that there is nearly no way BTC is falling much further than it already has, because “as crazy as it sounds, the -53 percent drop from $13,888 to $6,410 wasn’t a full out bitcoin bear market, but rather, unironically just mid-bull cycle correction.”
Bitcoin Preparing to Burst Higher
So, is the cryptocurrency market ready to head higher after seemingly finding a bottom? Well, it already has, with the price of digital assets surging by dozens of percent since mid-December.
And fortunately for bulls, the indicators suggest more upside is on its way.
The Lucid SAR indicator, which “signals a stop and an entry in the opposite direction,” just printed a bullish signal; the indicator printed its first buy signal since March 2019, which was prior to a 330% rally that brought BTC above $10,000 and crypto assets dozens of percent higher.
And, Glassnode data shows that Bitcoin’s network hash rate has just reached a 1-year high of 125 exahashes.