The cryptocurrency market has been in a bear market for most of 2018, with many seasoned investors feeling frustrated and some new buyers in shock. However, there are some signs that the market may be about to turn.
Linda Butcher, co-founder of Rewards Blockchain LTD., believes that the worst of the collapse has already happened. Butcher believes we’re likely approaching the bottom. As she explained to Forbes:
There are certainly stabilizing factors in this market that will ultimately influence prices. The substantial funds seem to be sitting on the sidelines waiting for the bottom.
I believe the market will start to respond as more public companies take cryptocurrency mainstream. These companies will be leaders in establishing blockchain as a lasting technology giving confidence to the global market and cryptocurrencies.
Over the last week, Bitcoin is down 19.84 percent, Ethereum is down 24.37 percent, Ripple is down 20.89 percent, Bitcoin Cash is down 29.98 percent, and Litecoin is down 26.39 percent at the time of writing. If we compare the latest prices to each cryptocurrency’s all-time high only a few months ago, the losses are astronomical.
Double Bottom Reversal
Butcher believes we’re likely approaching the bottom. She explained:
“There are certainly stabilizing factors in this market that will ultimately influence prices. The substantial funds seem to be sitting on the sidelines waiting for the bottom.
I believe the market will start to respond as more public companies take cryptocurrency mainstream. These companies will be leaders in establishing blockchain as a lasting technology giving confidence to the global market and cryptocurrencies.”
>Double Bottom+H&S sequentially
>Regular DB (#bitcoin likes it) would match bullish RSI div if it #hodl bounce zone RSI c(29;32)
>DB'd reach its target up to H&S head
>it'd see rejection of BO n drop to for 2nd shoulder
>multimatch target for 6,6k n 6,2k n symmetric triangle pic.twitter.com/FWaQJui2bG
— CryptoBirb (@crypto_birb) March 29, 2018
Butcher also rightly claims it has been easy to lose sight of the bigger picture after the stupidly-massive run-up the entire cryptocurrency market experienced at the end of 2017.
At that time, one could put money into just about any altcoin — even those without whitepapers — and see gains anywhere between 2-10x in a matter of days. Thus, it’s only natural that such euphoria would be followed by anger and depression as the cryptocurrency rocket corrected its flight path.
“We have to remember that March 30th of 2017 Bitcoin closed at $1026 and as of today it closed $7165. By all accounts that is a massive 12-month run not seen in any other market. That doesn’t seem like a crash to me.”
As said by Binance CEO CZ, bitcoin price exactly 1 year ago, in March 2017, was $1,000. Today, it is $7,000. That is, a 600 percent increase in price within a span of 12 months.
Never have I seen a market wherein investors cry over 600% annual gain. https://t.co/QrCUZlB0ya
— Joseph Young (@iamjosephyoung) March 31, 2018
All the above characteristics are very strong indicators of a complete bear market reversal into a bull market. As mentioned in the previous analysis, the bear run will continue the trend downward until significant volume picks up.
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