One of the most frequently asked questions over the last several weeks has been about the market hitting a bottom.
Specifically, it’s about when, if at all, the current bear market will end. Many within the crypto community are wondering when the bulls will take charge.
To many who’ve HODLed since 2013 and before, the realization is that markets cryptocurrency markets could be building up for a bear run on a four-year circle.
But perhaps the biggest question is whether the market has finally hit the bottom. For many coins, 2018 has seen prices crash to new levels.
The ever declining prices were last seen either at the beginning of the year or late 2017 before the great price run.
Cryptocurrency market prices are still trending lower today, even as some form of recovery is seen across the board. On June 24, the entire market capitalization stood at around $242 Billion.
Today, it’s at $251 billion. BTC dominance index is at 42%.
So, have Bitcoin (BTC) and Ethereum (ETH) hit the bottom?
Bitcoin prices dropped to a low of $5,826 on June 24, 2018, at around 19:04:34 UTC +03:00.
However, prices rebounded sharply within an hour to hit a high of $6,198 at around 20:04:36 +03:00. In so doing, BTC/USD gained almost $300 in an hour.
The sharp rise meant BTC/USD gained by about 8 percent in just that one hour.
The most significant thing, however, is that bitcoin prices had touched lows last seen in October and November 2017 when it traded below the $6k level.
It currently trades at levels last seen in February 2018. Over the last 24 hours, BTC has gained by about 4 percent and is in the green along with ETH.
Most enthusiasts believe that BTC has touched yet another bottom. The triple bottom could be what the market has been waiting for.
The only thing not certain is whether this is the end of the bearish decline.
Bitcoin may have hit the low prices ever in 2018, but according to some within the industry, it could still drop lower.
According to sentiments published on CNBC, Bitcoin supporter, and CEO of BKCM LLC, BTC is “not dead.”
He further went on to say that: “And bear markets, we don’t know where they end. It doesn’t mean that bitcoin can’t go lower. But this is by no means the funeral for bitcoin.”
The 2018 BTC price trend mirrors that of 2014, a time when it saw its prices plummet by about 80 percent since its all-time high.
Both 2014 and 2018 have seen huge sell-offs as fears amounted over regulations.
The prices of Bitcoin have hit lows like today’s before and every time it has happened, it has rebounded to reach new highs.
If at all the coin has hit a bottom, the expectation is that prices will correct higher and we could see a new 2018 high.
The next few days will give an indication of where sentiment lies.
Like the leading cryptocurrency Bitcoin, ETH too experienced a sharp rise in prices on Sunday, June 24.
This came after the 2nd ranked coin had hit a low of $427. Prices shot up to reach $457 in less than an hour.
Though it had dropped by about $50 in hitting the bottom, Ether recovered by about $30 and stemmed any further decline.
The last time Ethereum experienced such low prices was at the end of Q1 when it finally hit a low of $369 in April.
ETH/USD is trading just above $450 and the last time it traded near these prices, it dropped to below $400 before surging again.
Ethereum may yet decline below the current prices and dip to a new low. However, should it hold steady, it could see a surge.
Its RSI is approaching oversold territory and is trending a long bullish reversal candle.
Verdict: Bitcoin (BTC) and Ethereum (ETH) have both hit lows that indicate a triple bottom has been achieved.
However, it remains to be seen if there’s going to be a reversal. In most likelihood, prices will dip further before rebounding and thus it’s good to remain skeptical till after a few days.
Experts believe the bearish conditions still dictate sentiment and it’s possible we could yet see it head south in the next few days/weeks.