Skip to main content

Bitcoin: Where's the bottom?

Start date
End date
$
25 280
Target Price
Buy
Tip
Instrument: BTCUSDT
Throughout the month, Bitcoin has maintained relatively stable positions, consolidating within the range of $28,000 to $32,000. However, the release of US inflation data
Throughout the month, Bitcoin has maintained relatively stable positions, consolidating within the range of $28,000 to $32,000. However, the release of US inflation data exacerbated concerns that the Federal Reserve would make more aggressive interest rate hikes. This was one factor that put more pressure on BTC. Reports that the Celsius platform, whose assets are included in the Tether stablecoin's investment portfolio, halted withdrawals only added to the bad news.

Analyst's technical analysis background of the idea

The $20,000 level is a strong psychological support. If this level survives, Bitcoin could begin an active rebound to $25,280.

Analyst's fundamental analysis background of the idea

Bitcoin's price has fallen below the cost of mining, a position it's hardly able to remain in for long. Furthermore, large investors such as MicroStrategy have purchased the cryptocurrency at a higher average price and currently have significant unrealised losses. It's possible that they'll sell part of their bitcoins to avoid a margin call. In the short term, this may lead price of the crypto market's pioneer coin falling further. However, it's entirely possible that this dip will be bought up rather quickly.

As Bitcoin prices dropped, the network has seen many stablecoin transfers to cryptocurrency exchanges. Many market participants believe that Bitcoin is bottoming, which means that the current sell-off could be an excellent time to buy the cryptocurrency at a favourable price. The fact that there's an influx of rather large sums to exchanges indicates that whales are preparing to build up their BTC positions.


Total Tether transfers to exchanges

Historical data suggest that Bitcoin will soon hit bottom. The on-chain Mayer multiplier oscillator is around 0.55 (red circle), slightly below the March 2020 level (black circle) and almost identical to the 2018 level (blue circle) when Bitcoin began its massive rally.


Bitcoin prices and the Mayer multiplier indicator (blue line). The oscillator assesses the extent to which BTC prices deviate from its 200-day simple MA

Exchange BTC

Mining icon
Want Bitcoin for free?

Try our Bitcoin Cloud Miner and get additional crypto rewards based on your trading volume. It's immediately available upon registration.

Start mining

Mining icon
Want Bitcoin for free?

Try our Bitcoin Cloud Miner and get additional crypto rewards based on your trading volume. It's immediately available upon registration.

Start mining

Don’t miss new invest ideas in our application

Join StormGain — the most universal application for crypto. Buy, store, trade, exchange, earn and learn about crypto in a single tap.