Following Bitcoin’s plunge to the $60,000 level in the cryptocurrency market, two market figures offered assessments suggesting the bottom may have been reached.
Kip Herriage, founder and managing partner of Vertical Research Advisory, claimed that Bitcoin had hit rock bottom. According to Herriage, there has been a “clear spike in selling” in BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust (IBIT).
Herriage noted that during the period when trading volume reached record levels on the IBIT, Bitcoin’s relative strength index (RSI) fell to its third highest oversold level on record. He also pointed out that during the same period, the Bitcoin Fear & Greed Index fell to 5, its lowest level in history.
Herriage said that according to VRA systems, the IBIT has fallen to a level “beyond oversold”, adding: “The rubber band has been overstretched. As a result, we believe the lows have been reached. We are buyers.”
On the other hand, Jurrien Timmer said that Bitcoin’s fall to $60,000 last week coincided with the support zone he previously indicated. Timmer recalled that in his analysis a few months ago he said the four-year bull cycle might have ended.
According to Timmer, Bitcoin’s drop to $60,000 represents a relatively limited correction compared to past “crypto winters.” Stating that Bitcoin has become a “commodity currency” over time, Timmer suggested that price fluctuations may be less severe than in the past.
Noting that it’s clear that $60,000 is the definitive floor, Timmer said his own prediction is that this level is the floor. According to Timmer, a new cyclical bull market could begin after a few months of sideways and volatile movements. Highlighting the “mathematical congruence” of past cycles, Timmer said this is no guarantee for future performance, but new highs are possible over time.
*This does not constitute investment advice.
