Bitcoin price was cut in half in May, making today the last day for the bulls to take a stand and reverse the worst month on record.
Even if the blood stain finally lingers on the price chart, it doesn’t mean that bulls still can’t cause a stir and push prices higher. Here are five signs that Bitcoin price has bottomed or is about to hit.
The signals indicating the bitcoin bottom are near
Just as the extreme bullish sentiment and exuberance around mid-April were the local peak of the 2021 rally, the current level could also act as a low after sentiment shifted into the exact opposite.
A hidden bull div has formed on daily support | Source: BTCUSD on TradingView.com
Opposing investors and traders are suggesting buying the fear or blood on the street, but that still isn’t a reason to believe it has bottomed out.
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Rather, technical data in almost all time periods indicate a reversal of the trend. The first cryptocurrency forms a bullish divergence with daily support (see above). The rebound came as soon as 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 up, showing that after a month of chaos, cops are trying to pick up speed in the daily timeframe.
Up on a higher timeframe, Bitcoin price has also rebounded on a rising trendline in 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 are other reasons to be optimistic about BTC
If that’s not enough to make you believe that a time frame reversal is in the pipeline, there are plenty more reasons to be bullish in higher time frames.
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The rarely viewed two-week timeframe shows that Bitcoin fell to the middle SMA in the Bollinger Bands. The line was never lost during the last bull market. Indeed, the touch led to the ultimate upward impulse.
The two-week middle-BB was retested only once during the last bull run | Source: BTCUSD on TradingView.com
The recent decline also resulted in Bitcoin’s most profitable buy signal pointing to a “surrender” by BTC miners. The past bull markets saw more than 8,000% and 3,500% after the last buy signal per cycle occurred.
The most profitable buy signal in crypto is about to trigger | Source: BTCUSD on TradingView.com
Almost every time the signal appears, there is more upward movement on the way. Why should this be any different?
With so many stacked signals, the likelihood that the cryptocurrency will be close to the bottom increases. Drawdowns after the buy signal are still common, however, in the past, the potential rewards have always outweighed the risk in terms of ROI versus the loss.
Featured image from iStockPhoto, Charts from TradingView.com