Midway through January, crypto investors want to know why Bitcoin’s price spiked. Is it a dead cat bounce, a bull trap, or is the BTC bottom in soon, if not already past? Crypto analysts have offered a wide range of opinions.
The Bitcoin price remained in reject territory through December. Sellers were parting with the coin on crypto exchange markets for $16,750 and less per 1 BTC. Then in January, the crypto market got caught in a tailwind of macro risk-on sentiment.
After inflation cooled, job numbers improved, and consumer confidence picked up over December, crypto prices erupted.
The rally began to gather pace at the turnover of the new year. Then, the bulls took it parabolic last week.
So is the Bitcoin bottom in yet?
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Is a Bitcoin Bottom Here? Some Crypto Analysts Say Yes
Sean Farrell at Fundstrat is encouraged the Bitcoin bottom is nigh after BTC’s rally erased many losses from Alameda-FTX. Farrell says there is a “high probability” the “absolute” bottom for Bitcoin prices is near.
He is the vice president of digital strategy at Fundstrat Global Advisors. The market strategy and financial research firm has been long-term bullish on cryptocurrencies for years.
A popular crypto analyst who goes by the moniker “Smart Contractor” told his 280K+ Twitter followers on Jan 13 that his gut was telling him the bottom is in. He is credited with correctly calling the 2018 Bitcoin bottom.
But Smart Contractor also had some arguments to go along with their premonitions. The crypto analyst pointed out that the recent rally broke through two diagonal resistance trendlines. One was from the November 2021 ATH. The other started from the BTC price’s downward tumble since June 2022.
“This weekly BTC candle is solid AF breaking very key trendlines and low timeframe momentum is still going strong.”
Rekt Capital, another popular crypto trader, and analyst with 333K+ Twitter followers wrote of the same weekly candle:
“This current BTC Weekly Candle is looking very similar to the April 2019 Weekly Candle that confirmed a new Bull Market”
Based on a multi-year analysis of Bitcoin’s halving cycle, Rekt Capital expects a Bitcoin price floor in 2023.
Some Disagree
The Crypto Lemon, a trader since 2016, says there is a Bitcoin price bottom ahead, but we’ve still got a ways to go before we reach it.
Lemon uploaded the famous Wall Street Cheat Sheet graphic. But included edit lines to show they think prices are still heading toward a macro bottom, not there yet.
CryptoQuant agrees the bottom is not in based on the PNL index and bear/bull market cycle indicator.
Katie Stockton of Fairlead Strategies says that technical overbought indicators suggest we are not at the bottom yet. She predicts there will be a pullback at the next Fibonacci retracement level near $21,500.
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