Friday, December 3

Bitcoin’s crash may have already bottomed out. See here what to expect for next week


The turbulence seems to be coming to an end. Bitcoin has been recovering after sellers pushed the price to $ 55,600, leading us to believe that the bottom of the decline has already been reached.

At the time of this writing, BTC is trading at $ 59,139.21, accumulating a 2.52% gain during the last 24 hours.

Bitcoin starts to make higher and higher lows, hinting that the drop has already bottomed out. Source: TradingView.

Market sentiment supports the bullish view in the short term, as it has already managed to get out of the extreme fear terrain that was in the past days, and is now neutral.

A weekly summary of CryptoQuant published last Friday, shows how the main metrics related to supply / demand and accumulation of coins by whales are totally bullish.

In the summary they also review technical indicators, most of these were neutral on Friday, but now with the recent rally, most have also started to show bullish signals.

Short term market sentiment was bearish, however now the buying pressure we are seeing is trying to remove this bias.

Weekly summary of Bitcoin metrics. Source: CyptoQuant.

We still cannot confirm that the bottom of the Bitcoin crash has already been reached.

In the graph of the price of Bitcoin we see that a short-term bearish direction is still maintained, which should be eliminated to think that the bottom of the fall has already been reached.

However, the fact of having stopped in such a relevant support zone, such as the one around $ 55,000, is a good first sign.

Also, if we look to the left, the bullish force is still dominant, and at any moment it could surprise us.

If the trend is resumed, $ 76,700 is the short-term target

When we analyze the weekly chart for Bitcoin, it seems quite feasible that the bottom of the decline has already been reached.

The price corrected towards the 38.20% Fibonacci, one of the optimal levels to start a new momentum.

The rejection of low prices is already a good first indication. However, as I mentioned, we need to see a bullish transition on the daily chart to confirm that new highs will be reached.

If the bulls manage to regain control effectively, then the next target will be to hit $ 76,600 (-27% Fibonacci). Higher up, the next target is $ 87,200 (-61.8%).

The fall of Bitcoin hits bottom. Technical analysis of the weekly BTC vs USDT chart. Source: TradingView.

All our publications are informative in nature, so in no case should they be followed as investment advice.



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