Has the bottom finally been reached? Since Bitcoin’s precipitous fall to $ 6,600 late last month, analysts are wondering if the leading cryptocurrency has finally bottomed out after its multi-month downturn.
Understandably, analysts are at odds over this. Some are bullish, others are bearish.
The popular full-time trader Cold Blooded Shiller believes the bottom has not yet been reached. As evidence he cites a form of analysis developed by the prominent chartist and technician Richard Wyckoff.
Is the bitcoin low point really reached? Wyckoff-Schematics say no
Shiller comments that Bitcoin, in its current form, is in a “markdown of spread” near the $ 13,000-14,000 mark – a markdown contained in a descending channel that has existed since the tip of the recent bull run , When the top of the channel is hit, sellers discard their coins; when the bottom of the channel is touched, buyers enter and push the price back into the middle of the channel.
It looks like Bitcoin is in the middle of the channel at $ 7,400 – apparently in no-man’s land, not near a bottom.
“From the perspective of the volume, there is nothing for me to shout, ‘This is the ground’. For both markdowns and markups, we typically expect a ‘cumulative’ volume, “writes Shiller, stressing that there are no concrete signs that the low for the bitcoin market has been reached.”
Shiller concludes: For the low point, Bitcoin must quickly move out of the above-mentioned descending channel to fall in support, bounce and then proceed sideways in preparation for the next macro move. He expects a scenario in which the leading cryptocurrency could return to the low $ 5,000 regions, a range that other analysts have already identified as a potential macro-low.