Analysts have understandably divided over the question, as the correct answer would show in which direction Bitcoin will head for the next couple of months. Per a continually-growing number of prominent traders, there is a high likelihood that the bottom is in. Here’s more on why.<\/p>\n
Did BTC Bottom At $6,400?<\/h2>\n
Analyst Mexbt recently remarked that “there is a very high chance that the Bitcoin bottom is in,” drawing attention to the below chart, which shows that BTC’s chart has posted strong rebounds after interacting with the key historical horizontal support of $6,400. This, some analysts would say, marks a swing failure pattern that should favor bulls on a longer-term time frame.<\/p>\n
https:\/\/twitter.com\/stackxbt\/status\/23687681<\/p>\n
It isn’t only Mex that believes the Bitcoin bottom is in per simple charting techniques.<\/p>\n
Prominent trader SmokeyXBT recently posted<\/a>\u00a0the chart below on Twitter, remarking that if $6,400 \u201cwas the generational Bitcoin bottom, it was the most perfect bottom to ever be formed.\u201d<\/p>\n Indeed, the chart he attached to this message shows that BTC bounced off a macro established support of the 2018 bear market, which coincided with the lower bound of a six-month-long descending channel \u2014 these being clearly bullish signs.<\/p>\n That’s not to mention that as reported by NewsBTC earlier this week<\/a>, miner capitulation purportedly ended.<\/p>\n The reversal of the miner capitulation comes on the back of cryptocurrency data sites registering that the Bitcoin network\u2019s hash rate recently hit an all-time high, seemingly reverting the capitulation that was taking place.<\/p>\n What\u2019s notable about the \u201crecovery\u201d signal flashing is that this very signal marked a series of previous macro bottoms in Bitcoin\u2019s price history.<\/p>\n It isn’t only the charts that are favoring a Bitcoin bottom.<\/p>\n Per\u00a0previous reports from this outlet<\/a>, on-chain market intelligence firm Glassnode\u00a0recently observed<\/a>\u00a0that there is a confluence of factors suggesting that the Bitcoin bottom is forming, if not here already.<\/p>\n Glassnode pointed out that the Market Value to Realized Value (MVRV), the ratio between market cap and realized cap, is \u201cconsolidating towards one,\u201d which implies that gains are being realized by Bitcoin investors. A reading of \u201cone\u201d of the ratio often marks a bottom for the cryptocurrency market.<\/p>\n There\u2019s also\u00a0Willy Woo,<\/a> partner of Adaptive Capital, who recently remarked that on-chain momentum is \u201ccrossing into bullish\u201d territory after a multi-month downturn. With this in mind, he asserted that the \u201cbottom is most likely in,\u201d meaning that any move lower than the $6,500 plunge \u201cwill be just a wick in the macro view.\u201d<\/p>\n On-chain momentum is crossing into bullish. Prep for halvening front running here on in. Can't say what this indicator is, as it's proprietary to @AdaptiveFund, but it tracks investor momentum. The bottom is mostly likely in, anything lower will be just a wick in the macro view. pic.twitter.com\/WqiPRpweUv<\/a><\/p>\n — Willy Woo (@woonomic) December 7, 2019<\/a><\/p><\/blockquote>\n![](\"https:\/\/i0.wp.com\/cryptoslate.com\/wp-content\/uploads\/2019\/12\/SmokeyXBT_tweet_16389632.jpg?resize=1024%2C576&ssl=1\")
<\/p>\nRelated Reading: This Simple Indicator Implies Bitcoin Price is Nearing Macro Bottom<\/a><\/h6>\n
Bitcoin Metrics Corroborate Bottom Thesis<\/strong><\/h2>\n
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