Five Signs That The Bitcoin Bottom Is In

Bitcoin price was slashed in half during the month of May, leaving today as the last day for bulls to make a stand and undo the worst monthly on record.
Even if the blood stain is left behind on the price chart for good, that doesn’t mean bulls still can’t pull off an upset and push prices higher. Here are five signs that Bitcoin price has bottomed out, or will be soon.
The Signals Showing The Bitcoin Bottom Is Near
Just as extreme bullish sentiment and exuberance around mid-April was the local top of the 2021 rally so far, the current level could also act as the bottom now that sentiment has shift to the polar opposite.

A hidden bull div has formed on daily support | Source: BTCUSD on TradingView.com
Contrarian investors and traders suggest buying the fear or blood in the streets, but that’s still not the reason to think the bottom is in.
Related Reading | Building The Case That The Bitcoin Bottom Is In
Rather, technicals on nearly all timeframes point to a reversal in the making. The first ever cryptocurrency is forming a bullish divergence (above) while at daily support. The bounce happened once the Relative Strength Index hit oversold levels.

The logarithmic MACD shows momentum is turning upward | Source: BTCUSD on TradingView.com
The daily LMACD is also turning upward, showing that bulls are attempting to regain momentum on daily timeframes after a month of mayhem.
Moving up to a higher timeframe, Bitcoin price has also bounced at a rising trendline of RSI support on the three-day chart (below).

Bitcoin bounced off a high timeframe RSI support trend line | Source: BTCUSD on TradingView.com
But Wait, There’s More Reasons To Be Bullish On BTC
If that’s not enough to believe there’s a low-timeframe reversal in the making, on higher timeframes there’s still many more reasons to be bullish.
Related Reading | Don’t Have A Cow: Bart Simpson Is Back In Bitcoin
The rarely-looked-at two-week timeframe shows that Bitcoin fell to the middle-SMA on the Bollinger Bands. During the last bull market, the line was never lost. In fact, touching it resulted in the finally impulse upward.

The two-week middle-BB was retested only once during the last bull run | Source: BTCUSD on TradingView.com
The recent push down also caused Bitcoin’s most profitable buy signal to indicate “capitulation” in BTC miners. Past bull markets saw more than 8,000% and 3,500% after the last buy signal appeared per cycle.

The most profitable buy signal in crypto is about to trigger | Source: BTCUSD on TradingView.com
Nearly every time the signal appears, more upside is on the way. So why would this time be any different?
With so many signals stacking up, chances that the cryptocurrency is near the bottom are becoming more likely. Drawdowns post buy signal are still common, however, the potential reward has historically always outweighed the risk in terms of ROI versus loss.
Featured image from iStockPhoto, Charts from TradingView.com

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 51,613.83
ethereum
Ethereum (ETH) $ 3,024.44
tether
Tether (USDT) $ 0.999613
bnb
BNB (BNB) $ 379.38
solana
Solana (SOL) $ 102.28
xrp
XRP (XRP) $ 0.545338
staked-ether
Lido Staked Ether (STETH) $ 3,021.65
usd-coin
USDC (USDC) $ 0.999952
cardano
Cardano (ADA) $ 0.588577
avalanche-2
Avalanche (AVAX) $ 36.70
dogecoin
Dogecoin (DOGE) $ 0.085927
tron
TRON (TRX) $ 0.137474
chainlink
Chainlink (LINK) $ 18.47
polkadot
Polkadot (DOT) $ 7.72
matic-network
Polygon (MATIC) $ 0.971906
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 51,605.83
uniswap
Uniswap (UNI) $ 10.61
the-open-network
Toncoin (TON) $ 2.11
internet-computer
Internet Computer (ICP) $ 12.40
shiba-inu
Shiba Inu (SHIB) $ 0.000010
bitcoin-cash
Bitcoin Cash (BCH) $ 266.92
litecoin
Litecoin (LTC) $ 69.89
dai
Dai (DAI) $ 0.998889
immutable-x
Immutable (IMX) $ 3.10
filecoin
Filecoin (FIL) $ 8.32
cosmos
Cosmos Hub (ATOM) $ 10.25
kaspa
Kaspa (KAS) $ 0.172031
leo-token
LEO Token (LEO) $ 4.20
near
NEAR Protocol (NEAR) $ 3.74
ethereum-classic
Ethereum Classic (ETC) $ 26.14
blockstack
Stacks (STX) $ 2.52
hedera-hashgraph
Hedera (HBAR) $ 0.108000
bittensor
Bittensor (TAO) $ 573.78
optimism
Optimism (OP) $ 3.67
aptos
Aptos (APT) $ 9.31
first-digital-usd
First Digital USD (FDUSD) $ 0.999555
stellar
Stellar (XLM) $ 0.115571
vechain
VeChain (VET) $ 0.044963
okb
OKB (OKB) $ 50.53
injective-protocol
Injective (INJ) $ 33.89
lido-dao
Lido DAO (LDO) $ 3.29
render-token
Render (RNDR) $ 7.53
celestia
Celestia (TIA) $ 16.99
the-graph
The Graph (GRT) $ 0.295805
mantle
Mantle (MNT) $ 0.789744
crypto-com-chain
Cronos (CRO) $ 0.093131
arbitrum
Arbitrum (ARB) $ 1.85
monero
Monero (XMR) $ 124.59
sei-network
Sei (SEI) $ 0.829596
sui
Sui (SUI) $ 1.62