As the price of Bitcoin (BTC) has bled out over the past few months, drunkenly tumbling from $14,000 to $7,300 in an extended bear move, many have been asking when the cryptocurrency market will bottom. To the fortune of bulls, we’re purportedly almost there…
Has Bitcoin Bottomed?
Per Nik Patel, a well-known cryptocurrency trader and analyst who publishes regular reports, Bitcoin is not too far from a bottom in this “leg.” Patel wrote in a Twitter post that he expects for $8,300 to be the point at which the leading cryptocurrency finds some support, though prices could drop as low as “$8060 but I doubt any further.”
He did note, however, that he thinks that “we get higher-timeframe range chop until year-end though.”
I think we're not far off the bottom for this leg in $BTC.
Discussed $8300 as a likely area for price to find support in the Market Outlook in late October… could drop to $8060 but I doubt any further. Thinking we get higher-timeframe range chop until year-end though.
— Nik Patel (@cointradernik) November 17, 2019
Patel isn’t the only one that thinks Bitcoin won’t fall any further this deep into the market cycle. Delphi Digital, a research boutique closely tracking the crypto markets, recently noted that the volume profile of the Bitcoin market has printed clear signs that a bottom is in at $7,300. More specifically, the market printed signs of weak volume (capitulation), a short accumulation at the bottoming range, then a surge out of accumulation into a potentially new bull phase.
Volatility is Coming
Patel’s assertion that Bitcoin is near a bottom, if it hasn’t found it already that is, comes at an important time: analysts believe that a large bout of volatility is about to hit the cryptocurrency market, and Patel’s assertion that we’re “not far off the bottom” suggests implies that said bout of volatility may be in the upward direction.
Analysts expect impending volatility because the one-week Bollinger Band Width (BBW) indicator — an indicator that shows the width between the highest and lowest Bollinger Bands, which itself is a tool used to determine ranges — has reached the lowest levels since March 2019, which is right before Bitcoin’s explosive move to $14,000 began.
Though until the move happens, no one is the wiser. After all, not many expected Bitcoin to explode from $4,000 to $5,000 at the start of April to kick off the bull market, nor did many expect for the cryptocurrency to tumble from $6,000 to $3,000 to end Crypto Winter.
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