- Bitcoin price likely hit its absolute bottom according to the Market Mastery Divergence indicator.
- Analysts believe it is the best buying opportunity for traders in years, according to the indicator that worked in three previous cycles.
- Bitcoin price could face resistance at the $22,000 level according to analysts.
Bitcoin analysts believe that the bottom is in and the asset is ready to break out of its downtrend. Based on the Bitcoin price trend in previous cycles, the asset is currently at its bottom.
Also read: Bitcoin whale MicroStrategy reveals plan to scoop up $500 million in BTC
Bitcoin price hit bottom; analysts predict recovery
Benjamin Cowen, a leading crypto analyst, closely evaluated the Bitcoin price chart and observed that BTC had hit its cycle bottom. In a recent interview, Cowen pulled out a key metric, Bitcoin’s supply in the profit and loss chart.
The analyst was quoted as saying,
Some of the charts that I think are the most interesting are things like the supply in profit and loss. One of the interesting things about this chart is that historically, Bitcoin does not bottom until after they cross. Until after they cross.
For the first time in the current Bitcoin cycle, the supply in profit and the supply in loss crossed. This indicates that the Bitcoin bottom is in. The Bitcoin bottom typically occurs after the cross, therefore there is evidence that the current price level is a significant bottom for BTC.
Bitcoin percentage of supply in profit and loss
Analysts identified another key indicator, Market Mastery Divergence. When the line in the indicator turns red, it reveals a buying opportunity for traders. El Crypto Prof, a pseudonymous crypto analyst, considers this the best buying opportunity for traders.
While Bitcoin trades close to its bottom in the current cycle at the $21,641 level, it is an opportunity for traders to accumulate the asset for profit in the long term. Therefore, this is likely the Bitcoin bottom traders have awaited in the current cycle. The Bitcoin bottom is key to traders since accumulating at this level ensures a profitable yield for the rest of the cycle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.