The Crypto Market Just Put In a “Reliable Bottom Signal”: Can We Trust It?

“Has the crypto market bottomed?” is the question that has been on the minds of Bitcoin traders over the past weeks; after March 12th’s capitulation event, traders have been divided over this question.

Despite the uncertainty, Willy Woo, a prominent on-chain crypto analyst, recently weighed in on this pressing debate, writing that two fundamental metrics are suggesting the bottom has been established.

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Key Bitcoin Mining Indicator Suggests Crypto Market Bottom Is In

Utilizing two indicators, the analyst explained that the way in which Bitcoin’s mining ecosystem is developing is indicating this market bottomed in March.

Other Factors Are Flipping Bullish Too

There are other factors suggesting the worse has passed for the crypto market.

According to screenshots of crypto-enabled retail brokerages based in the U.K. shared by trader Nik Patel, a majority of users of these platforms are leaning long on Bitcoin. In fact, for IG.com is signaling that 78% of client accounts are long on the cryptocurrency.

Furthermore, Coinbase Pro’s order book shows that there are more traders bidding the foremost crypto than selling it, with there existing nearly 24,000 BTC worth of orders down to an order price of $2,000 and a mere 4,000 BTC worth of orders up to $12,000.

The fact that there is such booming demand for Bitcoin suggests it will be hard for sellers to push the cryptocurrency back to the $3,800 lows.

Bloomberg suggests that technical indicators support the idea that upside is favored. Per previous reports from NewsBTC, the GTI Vera Convergence Divergence Indicator recently “flashed its first buy signal in over three months” for the Bloomberg Galaxy Crypto Index — comprised of Bitcoin, Ethereum, Litecoin, Bitcoin Cash, XRP, and EOS.

Furthermore, the outlet on April 3rd wrote that Bitcoin has pushed above a key level of technical resistance, resulting in a technical gauge registering a “positive divergence and buy signal.” This indicator last did so in January 2020, prior to the 50% rally that brought BTC to $10,500.

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