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Bitcoin briefly fell below $60,000 due to outflows from US spot ETFs, a more hawkish Fed, and a stronger dollar.
While the decline is raising concerns that it could turn into a prolonged bear market, some analysts suggest that the bottom may be near.
At this point, Glassnode noted that Bitcoin was showing signs of bottoming out at $60,000 amidst its downtrend.
Glassnode’s weekly report stated that while Bitcoin continues its downtrend, signs of a market bottom are beginning to emerge.
The report states that $BTC is trading below the Real Market Average Price (RPP) of $77,000, which is the average cost basis for actively traded cryptocurrencies, but the influx of new investors has lowered the cost basis for short-term holders to $71,400. However, the average daily loss has also increased to $205 million.
According to analysts, $BTC is currently facing resistance in the $66,800 to $70,700 range, but some buying pressure is being observed on Coinbase.
Finally, Glassnode stated that the recent decline was driven by the spot market, followed by the derivatives market, which triggered a large amount of long position liquidations. This, in turn, triggered the decline.
Analysts also noted that the concentration of long positions in the options market between $60,000 and $64,000 was suppressing spot price volatility and supporting a support zone around the $60,000 level.
Bitcoin Could Bottom Out at $53,000!
Besides Glassnode analysts, renowned cryptocurrency analyst Plan B also commented on Bitcoin’s bottom. Plan B stated that Bitcoin could reach its bottom after falling below $53,000.
The renowned crypto analyst stated that Bitcoin, just like in all previous bear markets, is likely to fall below its current price of around $53,000 before reaching its true bottom.
*This is not investment advice.