Bitcoin price halved during the month of May. Many analysts saw May 31 as a critical day for the bulls to stand. Here are five signs that Bitcoin price has bottomed out.
The extreme bullish sentiment in mid-April was the local high so far of the 2021 rally, and the current level could also be the bottom as the sentiment is currently shifting to opposite poles.
Opposing investors and traders are suggesting to buy the drop, but there is still no reason to think that Bitcoin is at the bottom.
On the contrary, techniques on almost all timeframes point to a reversal. Bitcoin makes a bullish difference in daily support. The bounce occurred when the Relative Strength Index hit oversold levels.
The daily LMACD is also turning up, showing that the bulls are trying to gain momentum on the daily timeframes after a month of turmoil.
Bitcoin price rising to a higher timeframe also bounced off a rising RSI support trendline on the three-day chart (below).
This bounce is not enough to believe there is a reversal on the short-term timeframe, but there are many more reasons to forecast bullish on higher timeframes.
The rarely looked two-week time frame shows Bitcoin falling to the middle SMA in the Bollinger Bands. The line did not disappear during the last bull market. The price had touched the line finally resulting in an upward push.
The recent decline also caused Bitcoin to show “surrender” in BTC miners, one of the most profitable buying signals. Past bull markets have seen 8,000% and more than 3,500% after the last buy signal appeared in each cycle.
With so many signals piling up, the probability of the cryptocurrency being near the bottom becomes even greater. Drops can still be seen after the buy signal, which should be taken into account.