Is Bitcoin Finally Reaching Its Bottom?

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According to an article published by Omkar Godbole in Coindesk, Bitcoin may finally be sinking to the bottom sooner than expected.

This might seem as a welcome hypothesis for most cryptocurrency enthusiasts, although Godbole predicts that it will probably get worse before it gets better. He further speculated that bitcoin will fall in the $6,000 range over the weekend.

And the evidence? According to Godbole, evidence from market analysis reveals that Bitcoin has a tendency to change course every time the relative strength index (RSI) drops to or goes below 30.00. As of this writing, the RSI is close to that mark, at 32.00.

This report comes after a recent tweet by Barry Shilbert, Digital Currency Group founder, where he specified that part of the new bear cycle is derived from a tax season related sell-off.

 

With that in mind, if the market observes a drop below $6,000 that holds, it will probably indicate a deeper sell-off.

As you can see from the graph above from CoinmarketCap, Bitcoin has gone through some rough patches over the week, with over a 25% drop from a week high of $8,995.50.

At this time of writing, Bitcoin is now at $7,047.19.

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