Has Bitcoin's Price Hit Its Bottom? Analysts Say Not Yet

Summary:
As Bitcoin's price attempts to surpass the $70,000 mark, analysts like Leshka and Doctor Profit indicate that it may not have reached its bottom yet. Predictions suggest that Bitcoin’s value could decline further, with possible lows around $40,000.

Key Takeaways:

Bitcoin has not yet bottomed; historical data shows it usually drops more than 78% in bear markets.
Analysts predict further declines, with potential prices falling to $50,000 and even $40,000.
Current market conditions suggest that Bitcoin is experiencing a relief rally rather than a sustained uptrend.

Bitcoin

Why Analysts Believe Bitcoin's Price Hasn't Reached Its Bottom

Crypto analyst Leshka has shared insights indicating that the likelihood of Bitcoin's price having hit its bottom is low, despite the cryptocurrency's ongoing efforts to recover above the $70,000 level. His views align with predictions from other analysts such as Doctor Profit, who anticipate further drops, potentially reaching $40,000 for BTC.

Leshka highlighted in a recent post that historically, Bitcoin's price never bottoms out after a decrease of just 47%. He observed that every bear market has seen at least a 78% decline from its peak. Notably, Bitcoin experienced declines of about 87%, 84%, and 73% in the years 2013, 2017, and 2021, respectively.

Due to these patterns, Leshka concluded that Bitcoin has not yet reached its lowest point and indicated that another downturn might be forthcoming. His analysis suggested that Bitcoin could still fall to around $50,000 before finding a macro bottom for this cycle. Currently, Bitcoin has been consistently testing the $72,000 resistance, failing to maintain above it on multiple occasions. Accordingly, he anticipates a downturn to about $55,000 next.

Bitcoin
Source: Chart from Leshka on X

Another prominent analyst, Doctor Profit, has echoed these sentiments, asserting that Bitcoin has yet to locate its macro bottom. However, he predicts that BTC might establish a local bottom between $57,000 and $60,000. He believes that, in the long term, Bitcoin will ultimately fall below the $50,000 mark and venture into the low $40,000 range, which would signify the macro bottom.

Doctor Profit speculated that a potential bottom could emerge between September and October of this year. He mentioned that, in the interim, Bitcoin might experience a relief bounce or trade sideways before initiating another drop downward.

Understanding the Current Market Mood: Relief Rally Indicators

In another X post, crypto analyst Julio Moreno noted that the Bitcoin Bull Score Index has risen to 30, its highest since late October. He indicated a shift from an “extra bearish” to a “bearish” phase, with positive indicators appearing for exchange flows, stablecoin liquidity growth, and price momentum. Despite this, he cautioned that Bitcoin is still undergoing a bear market and is merely experiencing a relief rally.

Additionally, analyst Benjamin Cowen remarked that during bear markets, the price of Bitcoin tends to rise more frequently than it falls. Yet, when declines occur, they can be rapid and significant, followed by periods of recovery that can last weeks to months. “You can observe the transition in market structure from bull to bear,” he noted.

As of now, Bitcoin's price is hovering around $69,300, reflecting a slight decrease in the last 24 hours according to data from CoinMarketCap.

Bitcoin
BTC trading at $69,853 on the 1D chart | Source: BTCUSDT on Tradingview.com