Crypto has been rallying as of late along with other risk assets. Is the bottom of this bear market in?
Bear market bottoms are NOT an event, they are a process. Price action takes time to form a long-term bottom in a down trending market environment. It’s very rare to get a V-shaped recovery. After a crash, markets need time to heal, regroup, and get their momentum back.
With that said, there are a few things that are positive signs for the crypto market:
- Bitcoin is making higher lows and higher highs -> every pullback has been getting bought up.
- The stock market is showing a similar pattern which is needed for Bitcoin to run up as well.
- QQQ has entered into a very trade-able range and showing signs of a rounding base which is positive for crypto.
If this positive price action continues, we’re watching the $30k USD level and the 200 day moving average as possible key areas price can reach.
Remember, we’re still in a bear market so we have to always consider opportunity cost…
For a complete breakdown on whether Bitcoin and crypto bottomed watch our latest video here.
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