With the Bitcoin price continuing to bounce off from the $60,000s level, it is starting to look like the digital asset has found a bottom. Although there is still some weakness in the market, as crypto investors remain fairly cautious, there have been a number of recovery attempts that suggest that buyers are stepping back into the market. If this is indeed a macro bottom, then it only marks the beginning of what could possibly be the next bear market. However, there is still the possibility that the price has not bottomed, and lower lows could be coming.
There Is Still A Lot Of Fear In The Market
As crypto analyst Sykodelic explained in an X post, there is still the possibility that the Bitcoin price has not bottomed, and this is due to a number of factors. The first of these is the budding US-Iran war that has seen oil prices shoot up and could possibly affect the crypto market as well. Even now, there continues to be tensions regarding what could happen regarding the Strait of Hormuz.
Another factor is that the Bitcoin 200 Moving Average (MA) is sitting around $58,000 on the 1-Week chart. This means that there is a possibility that the bears will attempt to push the price toward this level again, given that there is major support brewing there.
Last but not least is the fact that bulls have failed to hold above $74,400, as the price has been ranging between $60,000 and $76,000 for months. Sykodelic believes that currently, the Bitcoin price is looking similar to the structure that led to the crash from $98,000 back in January.
Bitcoin Bulls Are Still In The Game
Despite the rising bear structure, there is still a lot of opportunity here for the bulls, according to the crypto analyst. They explain that the price might have already hit its macro bottom, suggesting that the recovery from here would be one that goes on for longer.
Some factors that also serve as evidence for this bullishness are that the funding rate is still positive. This means that long traders are now paying short traders to keep their positions open, something that could be bullish for the short term. Additionally, the Coinbase premium has moved into the negative territory and is continuing to move. Selling has also greatly reduced in favor of buying on centralized crypto exchanges such as Binance.
Given this trend, the crypto analyst believes that even if the Bitcoin price were to crash again, the worst-case scenario would be that the cryptocurrency returns to sweep the $60,000 lows. It could eventually wick down as low as $56,000, but not another major crash as has been seen in recent times.
Featured image from Dall.E, chart from TradingView.com
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