A new analysis published by Binance Research on April 11 indicates that both Bitcoin (BTC) and altcoin prices have already reached their bottom, and a change in market trend from bearish to bullish is underway.
Leading analysts from Binance Research investigated an array of data, phenomena, and trends within the crypto markets which left them leaning bullish. Their first presented analysis was the correlation between the smoothed market cap of Bitcoin and altcoins (excluding stablecoins).
As seen in the chart above, the analysts compiled Bitcoin and altcoin price data from 2014-2019. According to them, whenever these coins reach levels of 80% to 100%, the trend of Bitcoin against USD tends to reverse or at least puts an end to previous price action.
Looking at the last 90 days to mid-March, it represents the longest period of high correlation in market history, and thus indicates a high probability that the cryptocurrency market bottom is in, and that the price will either begin reversing upwards or see sideways action.
A stated in the Binance report:
“Having emerged from a period of the highest internal correlations in crypto history, the data may support the notion that the cryptomarket has already bottomed out.”
The question on everyone’s mind is whether or not the Bitcoin bottom is in. While nobody knows for sure, more and more prominent individuals in the crypto space are agreeing that yes, it is. As previously reported by IIB, veteran trader Peter Brandt, who called the 2018 price drop below $4,000, now says Bitcoin is entering a new parabolic phase.
Countless other top-tier crypto traders, investors, and analysts have recently turned bullish – such as the Bitmex CEO who says Bitcoin will test $10,000 in 2019 – and the CNBC contributor, Brian Kelly, who says Bitcoin will retest $6,000 next.
All in all, not only are the charts and data beginning to look bullish, but prominent traders and investors are becoming more confident the bottom is in as well.
Do you think the cryptocurrency markets have reached a bottom? Let us know what you think in the comment section below.
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