17 July 2021: Despite Bitcoin showing no sign of strength for the past three months, it is actually still in an uptrend that is intact all the way back to August 2020. Most of the selling strength has come from short to moderate term holders, possibly signaling the end of capitulation. The market is currently in a sentiment of extreme fear also pointing to a possible market bottom.
Bitcoin Still Isn't Dead
On some of the previous charts that have been put out, they were actually missing the bottom line of support - the very same level that was actually tagged when Bitcoin hit $28k USD. Bitcoin over the past year can be seen in full below:
The beginning of the current uptrend price channel can be traced back to the beginning of the chart below at the end of August leading into September 2020. The bottom level Bitcoin bounces off during this period is the very same bottom that Bitcoin is approaching right now. The last time Bitcoin touched this level, it then shot upward into a 522% rally that peaked at the all time high around $64,000 USD.
Currently, Bitcoin has been consolidating in a large range for multiple weeks. The recent moves lower show Bitcoin heading down to the very bottom of the current upward price channel, the level that can be seen in the chart below at tagging the $28,000 USD level, indicating a level of support there:
Based on this level, this could be the bottom of the recent market correction on Bitcoin before another large move up. At this point, Bitcoin can either bounce off this support to gain momentum upward with the establishment of another bottom, or Bitcoin can break this support, back test, and then head to much lower lows. Bitcoin and others will certain be interesting to watch over the weekend into next week.
Summary
Based on market sentiment being fearful, the widespread calls in the community for lower lows, and the heavier selling hand favors mostly short term holders, it is not outlandish to say that Bitcoin may be approaching the bottom, especially off support going back to August of last year, before a rally higher. Generally, the best time to position long term holds is after an event such as the recent market correction. Buyers essentially from February up until May 2021 got wiped out. Many are still selling at major losses at what could be the bottom.
That said, it is always keen to wait for a confirmation in direction which Bitcoin does not have yet. Be sure to draw out your own charts and perform your own due diligence prior to making an investment decision or you could get rekt. That said, do you think Bitcoin is at the bottom? Do you think Bitcoin sees lower lows? Leave your comments below!
*This is not financial advice, do your own research or get rekt*
