Although Bitcoin continues to consolidate above $ 7,000, analysts have still criticized the prospect that cryptocurrency bottomed out during “Black Thursday” last month.
Those who use this claim primarily cite the stock market and note that there are signs that the S&P 500 and other leading indices could be reversed. For example, Scott Minerd, CIO of financial services and investment firm Guggenheim Investments, noted in a note released earlier this month that there are signs that the S&P 500 and other leading indices will turn:
WE HAVE TO SEE THAT THE OTHER SHOE FALLS. IF SOME OF THE UNEMPLOYMENT DATA IN THE MARKETS RISE AND ECONOMIC GROWTH AND CORPORATE PROFITS SHRINK, THERE WILL BE ANOTHER LEVEL OF PANIC IN THE MARKET>
But there are increasing signs that the crypto market has bottomed out.
~~The March surrender proves that the low point has been reached
Crypto trader Wolf recently shared the image below, which shows that reversing the Bitcoin chart is a clear sign that it has bottomed out.
He found that almost all of Bitcoin's macro lows have been linked in recent years. In his opinion, this confirms “one more time that the crypto bottom has been reached”, as he noticed that the trend line “almost perfectly” matches the chart.
It's not just that. Previous reports show that, according to Mohit Sorout - partner at Bitazu Capital - the volume increase during the crash in March was similar to that of every single macro low that has been observed in the past 2.5 years was.
In addition, Glassnode noted that one of its indicators, which tracks the profitability of short-term BTC holders, is about to enter an area that historically coincided with the end of bear markets and the start of mature bull markets.
It may have bottomed out, but don't expect another test>
In the April issue of “Crypto Trader's Digest,” Arthur Hayes, CEO of BitMEX, suggested that despite the recent performance, he suspected a $ 3,000 retest on Bitcoin , calling it “absolutely [likely…] if the S&P 500 tips and 2,000 tests ”.
What is important is that even gold bottomed out during the Great Recession in 2008, suggesting the same thing could happen this time, but with gold and BTC at the top if the cryptocurrency lives up to “digital gold” status.