The current bear market has belied the predictions of the most seasoned analysts, but the latest market rally has revived investors’ hopes.
The bankruptcy of FTX fell like a real blow to the crypto market and shook the heavyweights of the industry. Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, have lost more than 20% and 30% respectively since early November.
Although the crypto market has picked up steam this week, the chances of a real price increase remain slim. Still, some crypto analysts are already starting to see the light at the end of the tunnel.
The crypto market’s market cap rose 5.93% on the day, reaching $828.74 billion and reviving analysts’ hopes.
Is the crypto market finally going green again?
Supporting macro indicators, the analyst SmartContracter revealed to his 214,000 Twitter followers that the price of Bitcoin is very close to the bottom. Something that could spell the end of the current bear market.
According to the analyst, Bitcoin’s three-day price chart is starting to form an “end diagonal” to complete the bear market’s ABC wave pattern.
Analyst RektCapital, for its part, believes that the contagion effect affecting crypto exchanges has become a historic trend. Indeed, it usually happens when approaching Bitcoin’s latest bottom, the analyst added, pointing out that during Bitcoin’s previous cycle, the drop was caused by Bitmex. “Before it was Mt Gox, and this time it’s FTX”.
Finally, analyst On-Chain College used the Mayer multiple to highlight periods when Bitcoin was in oversold territory relative to its 200-day moving average. According to him, these periods are characterized by fear, discouragement and anger, but are usually followed by an upswing in the crypto market.
Is Bitcoin Nearing Its Lowest Point?
In a post on TradingView, analyst TradingShot pointed out that BTC recorded its highest weekly volume in over a year two weeks ago. Something that could mean a reversal of the current trend.
According to the analyst, this drastic increase in weekly volume is usually accompanied by a trend reversal. Indeed, a similar peak was observed between November 19, 2018 and May 13, 2019, marking the bottom of the previous bear market.
However, Ecoinometrics, another crypto analyst, believes that the worst is not over.
In the past 13 years, Bitcoin has experienced difficult financial conditions only a few times, the analyst claimed, pointing out that bad news is in store for Bitcoin investors.
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