SO THIS IS IT? ARE WE LOOKING AT THE BITCOIN BOTTOM?
There are several reasons why Bitcoin could hit the ground.
Coo! It’s me, Crypto Owl, your only bird–friend that brings you the best crypto news on its wings. What happened on Tuesday? Let’s see.
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🥑 AVOCADO TOAST: So is there a Bitcoin bottom or not? + What else is going on in the market
🍉 SLICE OF WATERMELON: Top 6 Crypto news around the web
SO IS THERE A BITCOIN BOTTOM OR NOT?
Ok. Everyone is getting tired more and more every day. The bear market is awful. And actually, we’re all getting close to hitting the record.
What record, you ask? Let me explain. Today is 28th June. Only two days left, and this will be the first time when Bitcoin is closing the month under 200 WMA (aka week moving average). Is this the time to say congrats?
So as we see such signs, is Bitcoin hitting bottom?
Some people say - Bitcoin could crash close to $10k. And that could be the bottom. Scary? Yeah, but not as much as it going all the way to zerooo.
What are the other signs?
We can compare this bear market to the 2017 bear market. It’s similar. A lot.
Of course, it’s unlikely that history will repeat itself, because times then and now are different (inflation is higher, war is happening, interest rates are crazy, etc.). If you look at the data, it speaks for itself. And if it says true, well, it is very possible that the bottom is coming and that it will hit hard. Maybe even lower than $10k.
Oversold conditions prevailing.
A little bit of history again. Previous major bear markets correlated strongly with extreme oversold conditions. Already two times (in 2015, and in 2019) Bitcoin’s 14-week RSI (aka relative strength index) dropped below 30, and now this is the third time when it’s happening.
According to various stats, panic selling is going out of hand during this bear market. There were no such sales in 2019, 2020, or 2021 during the Corona Pandemic. But now, it's different.
And that's the sign that the bottom is close (because, again, the same happened in 2015, and 2019). If you feel confused about those numbers, well, don’t worry too much. Basically, what I want to say is that scenarios are possibly repeating. So we will see if the third time's the “lucky” one.
“Realized-price” indicator.
Bitcoin is below the so-called “realized price” which is the average price for every crypto in total supply. So, this situation is happening for the first time since the latest Pandemic market crash. So, could this be the bottom zone? Maybe. Or maybe not (yet).
Theoretically… we’re already in the bottom zone.
Bitcoin is down around 75% from its all-time high. History (again) shows that 70-85% drawdown from all-time highs marks the bottom zone. So.. we’re kinda in it. Or do we need to dip a little bit more?
WHAT ELSE IS GOING ON IN THE MARKET?
Solana's price is growing little by little. How? Because of the “inverse head and shoulders pattern”.
Interestingly, Terra Luna (the second version, of course) is skyrocketing up to 70%. Its price reached more than $2.70. Before 9 days, it was worth only around $1.62. Hmm. Could it be that someone’s regaining their trust in this coin with a shady past?
There are people who believe that Dogecoin will rally by 20% in July. Ok, let’s wait - it's not that far away. I wonder what Elon Musk would say about this.
Crypto society is speculating how low Ether could go. Because, compared to Bitcoin, Ether's price dropped even more in this bear market.
Ripple’s (XRP) price also bounced 30% up. Sure, the price is low (around $0.36), but it’s moving in the right direction. So, I guess it's good news?
3AC update: one of the most prominent crypto hedge funds just defaulted on a $670 million loan. So, dominos keep falling. Who’s next?
Coinflex paused their withdrawals. On top of that, they are planning to launch a $47 million “Recovery Token” to solve withdrawal issues. Interesting way to solve the problems.
Owl’s takeaway: it seems like we could be moving towards the Bitcoin bottom. At least I am a fact and data believer, and this is what I see from it now.
What do you think? Share your opinions with me - I’m genuinely interested in it!
TOP 6 CRYPTO NEWS AROUND THE WEB
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Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your own research and act responsibly with your profits.