With the price of Bitcoin (BTC) reclaiming $22,000, the question of whether the flagship digital asset has now reached a bottom or is just in a momentary bounce back is crossing the minds of many crypto traders alike.
Using Arcane Research data on public miners that sold Bitcoin monthly in 2022, economist and trader Alex Krüger found that the percentage of BTC production sold monthly in June far exceeds prior months.
Notably, as much as 15,000 BTC were sold in June, which is almost a 400% share of production that was sold monthly. Krüger wrote on July 17:
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“Bitcoin miners panic sold large quantities in June. Another clear sign of capitulation.”
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Notably, Finbold also stated on July 17 that the global crypto market capitalization climbed 8% in the previous 30 days despite bankruptcies in the industry. As things stand, the global crypto market cap is $1.02 trillion, a 4.15% increase over the last day, according to CoinMarketCap data.
The fact that the market has continued to expand despite struggling lenders, and falling currencies having a negative influence on the cryptocurrency sector might hint at a possible bottom as the market continues to maintain constant in the last month despite the negative headlines.
Meanwhile, prominent crypto analyst Trader Tardigrade offered up further data to support the notion that a bottom may be in for Bitcoin.
The trader noted bottoms in Bitcoin prices have traditionally been signaled by the simultaneous crossing of the fast and slow stochastic lines in the oversold zone. Historically, these have been the best monthly bars for accumulation.
“Cross-overs of Stochastic fast (%K) and slow (%D) lines in an oversold zone indicate $BTC bottoms, which have been the best accumulation monthly bars historically. The present candle will be closed in about 10 days.”
Elsewhere, leading crypto market analyst Rekt Capital noted on the bottom:
“Typical BTC Bear Market bottoms tend to take months to develop before a new macro uptrend begins. BTC has been meandering at current prices for only a few weeks. History suggests it is too premature to expect a full-blown macro trend reversal so soon.”
Finally, popular crypto trader and YouTuber CryptoYurii thinks the price behavior of Bitcoin might be a part of the Wyckoff setup, which could see BTC rising to $30,000 by September 2022. The setup is a technical indicator that alludes to the possibility of a bullish turnaround following significant downward movements.
Currently, Bitcoin is trading at $22,248, up 3.92% in the last 24 hours and 8.57% across the previous week, with a total market worth of $427 billion.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
