Bitcoin: Let's go one step at a time

  • Bottoming out is a long drawn process, not yet over for BTC.
  • Many paths to cross before it can be termed a bottom.

Bitcoin, the uncrowned King of cryptocurrencies, has given a bounce from the recent bottom, making many traders and investors believe that perhaps the largest crypto has bottomed out. But its a long drawn process and won't bottom out so soon.

BTC/USD is flat on day at $4,138 and trading in about 3 percent range for the day. In this small bounce visible, perhaps BTC would gain a bit further towards $4,600, its 21 days SMA and middle point of the Bollinger Bands. While volumes and volatility are on the lower side, thanks to weekend trading, it also is a sign that after a bounce of more than 15 percent from the bottom of $3500, bulls are not in a hurry to lap it up further.

Another sign that bottom is not yet in place is, it usually takes a few weeks for any asset class to bottom out for many months' bear market. It needs to consolidate near the bottom in a range bound market. So it would probably take a few more weeks and months before we can call it a meaningful bottom in place.

BTC/USD daily chart:

 


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