The current bear market has given a lie to the expectations of more experienced analysts, but the recent rally in the market has revived investors’ hopes.
The FTX bankruptcy It fell like a real smash hit on the cryptocurrency market, shaking the heavyweights in the industry. bitcoin And the EthereumThe two largest cryptocurrencies by market cap have lost more than 20% and 30% respectively since early November.
Although the cryptocurrency market has gained momentum this week, the chances of a real price rally are still slim. However, some cryptocurrency analysts are already starting to see the light at the end of the tunnel.
The market capitalization of the cryptocurrency market increased by 5.93% on the day, reaching $828.74 billion and renewing the hopes of analysts.
Will the cryptocurrency market finally go green again?
Supporting macro indicators, analyst SmartContracter revealed to his 214k Twitter followers that the bitcoin price is very close to bottoming out. Something that could signal the end of the current bear market.
According to the analyst, the Schedule From 3 days Bitcoin price starts to form an “final diagonal” to complete the bear market ABC wave pattern.
Analyst RektCapital, for its part, believes that the contagion effect affecting cryptocurrency exchanges has become a historical trend. In fact, this usually occurs near the latest bottom of Bitcoin, the analyst added, noting that during the previous Bitcoin cycle, the decline was caused by Bitmex. “Before that was Gox mountainThis time FTX.
Finally, the On-Chain College analyst used Mayer’s multi to highlight periods when Bitcoin was oversold relative to the 200-day moving average. According to him, these periods are characterized by fear, frustration, and anger, but they are usually followed by a recovery in the cryptocurrency market.
Is Bitcoin nearing its bottom?
In a post on TradingView, analyst TradingShot noted that two weeks ago, BTC posted its highest weekly volume in over a year. Something that could indicate a current trend reversal.
According to the analyst, such a significant increase in weekly volume is usually associated with a trend reversal. In fact, a similar peak was observed between November 19, 2018, and May 13, 2019, marking the bottom of the previous bear market.
However, Ecoinometrics, another cryptocurrency analyst, believes the worst is far from over.
Over the past 13 years, Bitcoin has faced difficult financial conditions only a handful of times, the analyst claimed, indicating that bad news awaits Bitcoin investors.
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