Bitcoin Bottom Could Be Near, According To Bitfinex: Here's What They Expect!

Last week, Bitcoin (BTC) rose nearly fifteen percent to over $93,000. However, this recovery didn't last. BTC experienced heavy selling on Monday, falling to $84,000, marking a rough start to both the week and December, the last month of the year.

However, this selling wave was short-lived. Bitcoin and altcoins quickly recovered after two days of declines.

As BTC surged back above $93,000, these sudden price swings have divided the market. Some analysts say the decline could continue, while others argue that Bitcoin is holding onto a strong support area and a bottom is near.

Has Bitcoin Really Bottomed?

At this point, Bitfinex analysts also took the side that argued that the bottom was near.

Bitfinex argued in its weekly Alpha report that the Bitcoin price is showing signs of bottoming out.

The exchange pointed to several indicators, including excessive deleveraging, capitulation by short-term holders, and seller exhaustion, where selling pressure is rapidly diminishing, suggesting that Bitcoin is very close to the cycle bottom.

"The recent recovery aligns with our previous view that the market is approaching a local bottom in terms of time, although we don't yet know if we've seen a bottom in terms of price."

According to Bitfinex analysts, these factors suggest that the Bitcoin price has entered a stabilization phase, creating the necessary conditions for a sustained recovery in the short term.

While Bitfinex analysts stated that there are many indicators pointing to a bottom in Bitcoin, one analyst said that it is too early to say that Bitcoin has reached the bottom.

It's Too Early to Talk About a Bottom in Bitcoin!

Cryptocurrency analyst Ted Pillows argued in his latest analysis that it is too early to confirm a bottom has formed for Bitcoin because the asset has not yet established clear support.

Pillows noted that his bottom predictions were weakened as BTC failed to hold key support levels like $100,000, $95,000, and $90,000 and easily fell below them.

Stating that BTC is currently stuck at the $93,000-$94,000 level and cannot create a stable support, the analyst said that an upward break of this level again would open the door to $100,000.

On the other hand, a rejection from this level could push Bitcoin back below the $90,000 level.

Source: CryptoSlate