Is Bitcoin Approaching Its Bottom?
The pressing question for many investors is whether an asset has truly reached its lowest point after enduring a prolonged downtrend. Recent market actions indicate that bitcoin (BTC) may have established its bottom just above $76,000 on March 10. This movement has created a pattern that echoes previous instances of market bottoming.
During this current correction, bitcoin experienced a significant decline of 30% from its all-time high of $109,000, which was recorded on January 20. After touching a low on March 10, it subsequently registered higher lows on either side of this date—approximately $78,000 on February 28 and slightly above $81,000 on March 31—forming what appears to be a triangular bottom.
A similar pattern was observed during the yen carry trade unwind in August 2024, when bitcoin reached its nadir near $49,000 on August 5. Once again, higher lows were noted on either side, specifically on July 7 and September 7.
Another noteworthy instance occurred with the launch of U.S. spot bitcoin ETFs in January 2024. During this period, bitcoin underwent a 20% correction, hitting a low just below $40,000 on January 23, also accompanied by higher lows on both sides of that date.
Omkar Godbole, the managing editor of CoinDesk Markets, highlights several indicators that suggest bitcoin could be nearing its bottom. He points out the emergence of a bullish structure in the market. “The latest pattern, which shows a transition from lower lows to higher lows and signifies a potential exhaustion of sellers, resembles bottoming patterns we observed in August and early 2024,” Godbole explains. “There is a plausible chance for renewed bullish momentum—though, as always, external factors such as Trump’s tariffs could pose risks to this trend,” he adds.
BTC/USD Forming a Bottom: (Source: TradingView)
