After Bitcoin fell to the $60,000 level in the cryptocurrency market, two prominent market participants provided valuations suggesting that the bottom may have been reached.
Kip Hereage, founder and managing partner of Vertical Research Advisory, claimed that Bitcoin has hit bottom. BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), had a “clear selling peak,” Hellage said.
Herridge noted that during a period when IBIT trading volumes reached record levels, Bitcoin’s Relative Strength Index (RSI) fell to its third-highest oversold level on record. He also pointed out that over the same period, Bitcoin’s Fear and Greed Index fell to an all-time low of 5.
Herridge said IBIT has fallen to levels that are “beyond oversold” according to the VRA system, adding: “The rubber band has stretched too far. As a result, we believe we have reached the bottom. We are buyers.”
Meanwhile, Julian Timmer said that Bitcoin’s fall to $60,000 last week coincided with a previously indicated support zone. Timmer recalled that in an analysis a few months ago, he said the four-year bull cycle may be over.
Timmer said Bitcoin’s drop to $60,000 represents a relatively limited correction compared to past “crypto winters.” Timmer said that over time Bitcoin has matured into a “commodity currency” and suggested that price fluctuations may not be as severe as in the past.
Timmer noted that it’s unclear whether $60,000 is a definitive bottom, but said his prediction is that this level is the bottom. After months of sideways volatility, a new cyclical bull market could begin, Timmer said. Timmer pointed to a “mathematical congruence” in past cycles, which does not guarantee future performance, but could lead to new highs over time.
*This is not investment advice.
