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Bitcoin fast approaching $20k as market tanks

Bitcoin fast approaching $20k as market tanks

Bitcoin has lost around a third of its value over the last week, and isn’t showing many signs of stopping. We’ve seen Celsius struggling with liquidity issues, and now hedge fund Three Arrows Capital could be facing a similar problem. However, is one important indicator about to signal a bottom?

In what could turn out to be the worst, and most damaging crash in bitcoin’s short history, the crypto market is red across the board. Many projects are now down well into the 90% region.

Bitcoin is now very close to the high of around $19,500 which was reached at the top of the last bull run in December 2017. Many analysts say that the bitcoin price should not go below this, given that previous bull run highs have not been breached until now.

Be that as it may, and given the sheer amount of fear, plus insolvency issues suffered by the likes of Celsius and Three Arrows Capital, the resulting cascading effect could bring bitcoin and crypto a lot lower from here.

Looking at the much higher time frames, it can be seen that $19,500 is an extremely important support level, as it rests on the 2017 high. However, if it should be pierced and bitcoin establishes below, then the biggest level arguably in the whole of bitcoin history is the next support at $14,000.

Bitcoin bottom signal?

Technical and on-chain analysts are finding various signals that just might herald a turning point, and one in particular has just started to fire. Over the entire course of bitcoin history this signal has given a pretty accurate buy signal, indicating a great time to buy.

The Bitcoin Hash Ribbons indicator has just posted a green signal, which will ultimately turn into the blue buy signal, typically over the next one to two months on the daily time frame.

The signal tells us when miner capitulation happens. Given that the miners are generally the last to throw in the towel at the bottom of bear markets, it is a pretty good indicator that the bottom has been reached.

It must be acknowledged though, that as useful as it is, the Hash Ribbons indicator could be more fallible as market conditions change going forward. It may be advisable to always use a good variety of indicators, and look for confluence over as many of them as possible before deciding to buy.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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