Is This Bitcoin’s Final Dip? Exploring the Local Bottom of the Cycle

The post Is This Bitcoin’s Final Dip? Exploring the Local Bottom of the Cycle appeared first on Coinpedia Fintech News

It’s been 11 days since the fourth Bitcoin halving, and popular crypto analyst “MikyBull Crypto” has said that he thinks Bitcoin is at or near its final local bottom before the post-halving rally kicks in; let’s take a closer look at his reasoning – 

Bitcoin Bull Market Support Band

Global liquidity is strongly correlated with Bitcoin and is currently at a level where it bounced back, initiating a huge rally across the crypto market.

The levels it bounced back in the past were in Oct 2022 and Oct 2023 which initiated a huge rally across digital assets… pic.twitter.com/izo1uyjwHp

— Mikybull Crypto (@MikybullCrypto) May 1, 2024

According to MikyBull Crypto, the bull market support band for Bitcoin has historically been a strong support during bull cycles. Essentially, this range represents where Bitcoin has typically found buying interest which leads to a bounce and continuation for upside.

Given the current market conditions, MikyBull suggests that BTC may have wicked through the support and could be ready for a bounce.

Positive news often marks the top of a bull market while negative news signifies the bottom. As we all digest recent events and macroeconomic developments within crypto then this could hold for this cycle too.

Global Liquidity & BTC Correlation

One point made by MikyBull is around global liquidity showing a strong correlation with price action in bitcoin. The current liquidity level matches up with previous times where there were large rallies in bitcoin such as October 2022 and October

This correlation suggests that a similar rally could be on the way, indicating a potential bottom for Bitcoin.

The facts and figures in the graph prove this point: Bitcoin tends to respond well whenever there is an increase in global liquidity. Usually, when more money is available, it indicates a favourable atmosphere for risk-on resources such as Bitcoin; thereby, strengthening the likelihood of a coming rally.

Turning Point

Bitcoin stands at a turning point today because of the current macroeconomic turbulence. Analysts believe that it will reach $48,000 but markets do not always follow what analysts predict. MikyBull points out that this could be the last local bottom before Bitcoin resumes its rally to cycle peak.

This turning point reflects how uncertain things are right now, which means there might be big price movements soon enough. The market needs more signals from bitcoin tradesmen and investors while looking at what happens worldwide during times of high liquidity if they want to know which way it will go.

Probable Route of Bitcoin

MikyBull’s evaluation agrees with general observations made by others who say history may repeat itself. If we look back at 2017’s patterns, then maybe this final local bottom has already happened or is near yet again. Nobody knows for sure, but these thoughts can help us understand where cryptocurrency markets are currently heading.