Key Points
- Bitcoin’s value has seen a drop of more than 4% in the past week, causing market indicators to remain bearish.
- Despite the price corrections, historical trends suggest a possible market bottom, hinting at a potential increase in the coming days.
Bitcoin’s performance in the past week has been less than stellar, with its price falling below the $65k mark. This drop in price has caused a wave of fear among investors. However, historical market trends suggest that this trend could soon reverse.
Bitcoin’s Market Bottom
According to data from CoinMarketCap, Bitcoin was down by nearly 4.5% in the past week. Moreover, in the last 24 hours alone, the price of the leading cryptocurrency dropped by over 2%. At the time of writing, Bitcoin was trading at $63,931.44 with a market capitalization of over $1.26 trillion.
Santiment, a market analytics firm, recently posted a tweet stating that the market was mainly fearful or disinterested in Bitcoin. This level of fear, uncertainty, and doubt (FUD) is rare and usually leads to bounces that reward patient traders.
Future Predictions
To determine if Bitcoin was near its market bottom, Glassnode’s data was analyzed. The Pi Cycle Top indicator suggested that Bitcoin’s price had dropped from its perceived market bottom of $66.5k, indicating a potential price increase in the future. If market conditions become bullish, Bitcoin could reach its market top of $91k in the upcoming weeks or months.
Other metrics also appear bullish. For instance, Bitcoin’s fear and greed index currently sits at 37%, indicating a “fear” phase. Historically, when this metric hits this level, the likelihood of a bull rally increases.
However, data from CryptoQuant revealed some bearish metrics. For example, Bitcoin’s exchange reserve was on the rise, and its net deposit on exchanges was higher than the average of the last seven days, suggesting that selling pressure on Bitcoin was high.
A look at Bitcoin’s daily chart showed that most indicators were bearish. The MACD displayed a clear bearish upper hand in the market. The Relative Strength Index (RSI) registered a downtick, and Bitcoin’s Chaikin Money Flow (CMF) also followed a similar declining trend, hinting at a continued price drop.
