The Bitcoin market recently experienced a significant price drop, falling from $64,500 to $58,474 within a span of two days. This sudden decline was sparked by an announcement from the trustee of the Mt. Gox exchange, stating that BTC and BCH payouts would begin in early July. As a result, the market is now faced with uncertainty regarding the future trajectory of Bitcoin’s price. Amidst this turmoil, various cryptocurrency analysts have shared their insights on whether Bitcoin is approaching a potential bottom.
Tony “The Bull” Severino, Chief Analyst at NewsBTC, conducted a technical analysis using the Relative Strength Index (RSI). He noted that the RSI levels are currently as oversold as they were during the collapse of FTX, indicating a possible cyclical bottom. Historically, similar levels have preceded a rebound or stabilization in price. The Byzantine General, a trader and market strategist, also pointed out the high spot volume accompanying the price drop, suggesting a possible local bottom due to panic selling exhaustion.
Furthermore, social media sentiment, as analyzed by Santiment, revealed a surge in discussions surrounding the term “bottom.” This heightened market attention could correlate with potential pivotal market movements. Teddy, a cryptocurrency trader, emphasized the significance of historical patterns and technical indicators like the 21-week Exponential Moving Average (EMA). He suggested that if history is any guide, $61k could represent the bottom, as corrections in the BTC bull run typically touch the 21-week EMA before rebounding.
James Check, an on-chain data analyst, focused on value acquisition rather than pinpointing the exact bottom. He highlighted on-chain metrics like STH-SOPR and STH-MVRV being below 1, indicating opportunistic entry points for long-term investors. Rekt Capital analyzed Bitcoin’s performance in post-halving periods, noting that historically, BTC has not broken the high or lost the low of its ReAccumulation Range in any post-halving period. This suggests that Bitcoin should hold these levels, according to historical precedent.
Market psychology was also considered by Cred, who expressed skepticism about the current bottom. He noted that a market failing to break down at a level, only to return and close below it later, could indicate a more legitimate breakdown. As of press time, BTC was trading at $61,014. Despite the recent price drop, the market remains fluid and the future trajectory of Bitcoin’s price continues to be a topic of discussion among analysts and traders.