The price of bitcoin is back at $ 37,000, reduced to $ 30,000 by a catastrophic fall. The sell-off created fear in the market, as never before, making buying dips a scary risk.
However, there are many indications that the bottom may occur, while all sentiment has come to a complete downturn and the market expects more depth. Could this in itself be a sign that the bottom is there?
Recycling of recent crypto market reforms
The recent peak in bitcoin price was a “top” that was seen by very few people, although from a technical standpoint, it was obvious. BTC was closing the exchanges and Fundamental backed very high prices, but after such a strong run up, the top trending cryptocurrency was sure to be right.
And corrected it – a full 50% and then some. Historically, this is one of the most serious bull market reforms. The severity of Black Thursday’s move prompted an upward polar opposite reaction.
Related reading | Further volatility: Why chaos in bitcoin and crypto is only the beginning
But could a similar severity in the recent collapse be a catalyst for raising prices more, not the beginning of a bear market as many would expect? For one, the emotion is ripe for reversal.
Stacking down signals for bitcoins
After spending almost a full year in greed mode, the crypto market scare and greed index is one of the most frightening readings yet. Contradictory investors recommend buying blood on all streets and being greedy when others are frightened. Being frightened while others were greedy has clearly paid off for someone Who took a small position at the top – As rare as can be.
But there are more signs than this.
BTC bounced right on rising RSI support | BTCUSD on TradingView.com
Perhaps the biggest technical factor indicating that bitcoin has come down is the fact that the three-day Relative Strength Index has overturned an ascending trendline that supports all previous bottoms in crypto.
In December 2018 and again on Black Thursday – and now has bounced once again. A similar story can be seen in the chart above which includes how the 2017 bull market had a similar growing support structure.
Related reading | Broken Parbola: Mapping the Bitcoin Bull Market and more
Here below, Bull suggests another impulse in bitcoin before the market ends. This means that the pain from the recent setback is not yet over, as sellers may be forced to return FOMO to much higher prices, which will help to overcome the fury of the final impulse.
Interestingly, the crash descended exactly where the parabolic curve would support the second base to rise higher for more bull trends, adding more reliability to the bottom.
A long-term bull trend is still holding | BTCUSD on TradingView.com
Also in three days, the price of bitcoin remains after piercing down into the Ichimoku cloud. A Bullish Hammer Candle is being formed in support. If bulls can pass through here and push the leading cryptocurrency from the cloud to the market cap, then the bull market will remain unbroken and new heights in the forecast.
Remember, the techno said that a top was inside and no one saw it coming. Currently, things are somewhat mixed but the case for the bottom becomes day by day.
Featured image from iStockPhoto, Charts from TradingView.com