As Bitcoin dumps again and is trading slightly below $3500 at the time of writing, I think Bitcoin may have hit bottom. This is very much the contrarian point of view right now. Everyone from Crypto Twitter, YouTube, and the mainstream media is anticipating lower lows and it’s almost a given that Bitcoin will reach sub-3k prices. I’m taking the contrarian point of view for a variety of reasons. The 200 weekly simple moving average is a major support level and Bitcoin marked its current cycle low by bouncing strongly off of it. I’m not a professional analyst and so this is where my TA ends. For a more comprehensive technical argument, Renato Shirakashi wrote a great article that argues from a technical perspective why Bitcoin has likely bottomed.
Additionally when you look at the global economic climate, things are not looking healthy. The Trump-proclaimed strong growth in the economy over the past two years is in fact completely debt-based. As Wall Street’s respected “bond king” and billionaire Jeffrey Gundlach said,
I could go on and on about the danger signs in the US and global economies. The stock market is shaky at best and the major stock indeces are entering a great point of resistance (kinda like Bitcoin’s 6k break point). This upcoming week should tell us how stocks will react to this point of resistance, but the warning signs are telling me it likely won’t be good.
Many are of the mindset that larger funds and institutional investors are largely not invested in the cryptoasset market as of yet. But OTC sales in 2018 were sizable and I believe that to be institutions…