{"id":14728,"date":"2022-11-15T04:05:35","date_gmt":"2022-11-15T09:05:35","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=14728"},"modified":"2022-11-15T10:12:13","modified_gmt":"2022-11-15T15:12:13","slug":"bitcoin-bottom","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/bitcoin-bottom\/","title":{"rendered":"Bitcoin Bottom: Why $BTC may be Bottoming Out Now"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/morpheustrading.com\/~rick\/charts\/2021\/bitcoin-bottom.jpg\" alt=\"Bitcoin bottom on weekly chart\" width=\"640\" height=\"427\" title=\"\"><figcaption><em>Source: Unsplash<\/em><\/figcaption><\/figure>\n\n\n\n<h1 class=\"wp-block-heading\">Despite recent weakness, Bitcoin has just flashed a powerful technical signal that hints a $BTC bottom may be coming soon. Here&#8217;s what the charts are telling us now&#8230;<\/h1>\n\n\n\n<p>The 2022 crypto bear market has been <a href=\"https:\/\/time.com\/nextadvisor\/investing\/cryptocurrency\/future-of-cryptocurrency\/\" data-type=\"URL\" data-id=\"https:\/\/time.com\/nextadvisor\/investing\/cryptocurrency\/future-of-cryptocurrency\/\" data-schema-attribute=\"mentions\" target=\"_blank\" rel=\"noopener\">quite challenging<\/a> for investors in the crypto space.<\/p>\n\n\n\n<p>But <strong>bear markets <em>eventually<\/em> lead to fantastic buying opportunities<\/strong>&#8212;<em>as long as you&#8217;re not too early.<\/em><\/p>\n\n\n\n<p>After <a href=\"https:\/\/www.coindesk.com\/markets\/2022\/11\/09\/bitcoin-falls-below-17k-amid-latest-ftx-meltdown\/\" data-type=\"URL\" data-id=\"https:\/\/www.coindesk.com\/markets\/2022\/11\/09\/bitcoin-falls-below-17k-amid-latest-ftx-meltdown\/\" data-schema-attribute=\"mentions\" target=\"_blank\" rel=\"noopener\">Bitcoin&#8217;s recent fall<\/a> to a new, 2-year low, many crypto traders are now asking, &#8220;Has Bitcoin hit bottom?&#8221;<\/p>\n\n\n\n<p>The current $BTC price action needs more time to play out for most technical indicators to be meaningful.<\/p>\n\n\n\n<p>However, last week&#8217;s <strong>record volume levels alone mean that Bitcoin could be forming a major bottom now.<\/strong><\/p>\n\n\n\n<p>Why? Because record volume leading to big rallies in the following months has been a <em>historical crypto trend.<\/em><\/p>\n\n\n\n<p>In this  post, we walk through a few key charts to show you why Bitcoin may be bottoming out now.<\/p>\n\n\n\n<p><em>Continue reading our &#8216;just the facts&#8221; $BTC analysis<\/em> <em>below<\/em>&#8230;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/bitcoin-bottom\/#Has_Bitcoin_Hit_Bottom_Lets_see_what_the_charts_say%E2%80%A6\" >Has Bitcoin Hit Bottom? Let&#8217;s see what the charts say&#8230;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/bitcoin-bottom\/#Bitcoins_Highest_Volume_Day_Ever\" >Bitcoin&#8217;s Highest Volume Day Ever<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/bitcoin-bottom\/#Current_short-term_support_and_resistance_levels_for_BTC\" >Current, short-term support and resistance levels for $BTC<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/bitcoin-bottom\/#Is_Bitcoin_Bottoming_Out_Volume_Speaks_Volumes\" >Is Bitcoin Bottoming Out? Volume Speaks Volumes!<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/morpheustrading.com\/blog\/bitcoin-bottom\/#Why_does_high_volume_matter\" >Why does high volume matter?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/morpheustrading.com\/blog\/bitcoin-bottom\/#Bitcoins_Top_7_Highest_Volume_Days_highest_to_lowest\" >Bitcoin&#8217;s Top 7 Highest Volume Days (highest to lowest):<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/morpheustrading.com\/blog\/bitcoin-bottom\/#How_much_did_BTC_rally_after_previous_highest_volume_days\" >How much did $BTC rally after previous highest volume days?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/morpheustrading.com\/blog\/bitcoin-bottom\/#Will_the_bullish_volume_pattern_lead_to_another_bottom_in_Bitcoin\" >Will the bullish volume pattern lead to another bottom in Bitcoin?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Has_Bitcoin_Hit_Bottom_Lets_see_what_the_charts_say%E2%80%A6\"><\/span>Has Bitcoin Hit Bottom? Let&#8217;s see what the charts say&#8230;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/morpheustrading.com\/~rick\/charts\/2021\/BTCweekly111422.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/morpheustrading.com\/~rick\/charts\/2021\/BTCweekly111422.png\" alt=\"Bitcoin bottom on weekly chart\" width=\"715\" height=\"344\" title=\"\"><\/a><\/figure>\n\n\n\n<p>After months of stagnant, sideways price action, <a href=\"https:\/\/bitcoin.org\" data-type=\"URL\" data-id=\"https:\/\/bitcoin.org\" data-schema-attribute=\"about\" target=\"_blank\" rel=\"noopener\">Bitcoin ($BTC)<\/a> sliced through support of its June 2022 low to a fresh, 2-year low last week. <em>Press weekly chart of $BTC above to expand image.<\/em><\/p>\n\n\n\n<p>That prior support level at <strong>17,600 (yellow line) has now become new, short-term resistance.<\/strong><\/p>\n\n\n\n<p>But despite Bitcoin&#8217;s fall to a new low, notice how new support of the prior downtrend line (purple line) kept the losses in check.<\/p>\n\n\n\n<p>That downtrend line has become support because <em>a prior level of resistance becomes the new support&#8212;AFTER the resistance is broken<\/em> <em>(and vice versa)<\/em>. This is a basic tenet of technical analysis.<\/p>\n\n\n\n<p>Last week&#8217;s breakdown to a new low was obviously bearish, BUT <strong>a significantly <em>positive<\/em> signal was also generated<\/strong>&#8212;<strong><em>the highest $BTC volume WEEK ever<\/em><\/strong> <strong>(as shown above).<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bitcoins_Highest_Volume_Day_Ever\"><\/span>Bitcoin&#8217;s Highest Volume Day Ever<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bitcoin not only marked its highest volume week ever. <\/p>\n\n\n\n<p><strong>$BTC also had its <em>highest volume DAY in history<\/em><\/strong> <strong><em>(November 8).<\/em><\/strong><\/p>\n\n\n\n<p>The big volume spike is shown on the daily chart below, along with <em>new, short-term support and resistance levels to monitor<\/em> (press chart to expand):<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/morpheustrading.com\/~rick\/charts\/2021\/BTCdaily111422.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/morpheustrading.com\/~rick\/charts\/2021\/BTCdaily111422.png\" alt=\"Bitcoin bottom on daily chart\" width=\"715\" height=\"344\" title=\"\"><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Current_short-term_support_and_resistance_levels_for_BTC\"><\/span>Current, short-term support and resistance levels for $BTC<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When $BTC broke down to a new low on November 8, it found support and bounced off the 15,550 level (purple line).<\/p>\n\n\n\n<p>The price action rebounded sharply the next day, but<em> notice how the rally stalled right at new resistance of the 17,600 level (yellow horizontal line).<\/em><strong> <\/strong>This is a great example of how prior support can become new resistance (as explained earlier).<\/p>\n\n\n\n<p>In the near-term, <strong>Bitcoin price is now wedged between support at 15,550 and resistance at 17,600.<\/strong> <em>A decisive move beyond either of these levels could lead to high volatility.<\/em><\/p>\n\n\n\n<p>Despite Bitcoin&#8217;s breakdown to new 2022 lows, the selling pressure eased pretty quickly after the November 8 sell-off that sparked a wave of <a href=\"https:\/\/academy.binance.com\/en\/glossary\/forced-liquidation\" data-type=\"URL\" data-id=\"https:\/\/academy.binance.com\/en\/glossary\/forced-liquidation\" target=\"_blank\" rel=\"noopener\">forced liquidations<\/a> (bullish due to less supply).<\/p>\n\n\n\n<p>In the short-term, our <strong><em>short-term<\/em> outlook in the <a href=\"https:\/\/morpheustrading.com\/services\/crypto-picks\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/services\/crypto-picks\"><em>Morpheus Crypto<\/em><\/a> portfolio is neutral <\/strong>because we are anticipating a bit of sideways chop.<\/p>\n\n\n\n<p>However, volatility could quickly pick up in this news-driven environment, so we are<em> prepared for anything.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_Bitcoin_Bottoming_Out_Volume_Speaks_Volumes\"><\/span>Is Bitcoin Bottoming Out? Volume Speaks Volumes!<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Although the short-term trend of $BTC does not yet look good, recent <strong>volume patterns are signaling a potential rally in the <em>intermediate-term.<\/em><\/strong><\/p>\n\n\n\n<p>As discussed above, Bitcoin just recorded both its highest daily <em>and<\/em> weekly volume ever.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_does_high_volume_matter\"><\/span>Why does high volume matter?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Although often overlooked by newer traders, volume is widely considered to be <em>one of the most reliable and important technical indicators <\/em>for <a href=\"https:\/\/morpheustrading.com\/services\/crypto-picks\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/services\/crypto-picks\">crypto swing traders<\/a> to monitor.<\/p>\n\n\n\n<p>Volume is the gasoline that drives market momentum in <em>both<\/em> directions. It is an indicator that never lies.<\/p>\n\n\n\n<p>Some technical indicators can give deceiving signals, but volume shows us what&#8217;s <em>really<\/em> happening &#8220;under the hood.&#8221;<\/p>\n\n\n\n<p>As the data below shows, <strong>massive volume spikes have historically preceded substantial $BTC rallies.<\/strong><\/p>\n\n\n\n<p>Check it out&#8230;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bitcoins_Top_7_Highest_Volume_Days_highest_to_lowest\"><\/span>Bitcoin&#8217;s Top 7 Highest Volume Days (highest to lowest):<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li>November 8, 2022<\/li><li>March 13, 2020<\/li><li>March 12, 2020<\/li><li>November 9, 2022<\/li><li>June 13, 2022<\/li><li>May 19, 2021<\/li><li>June 15, 2022<\/li><\/ol>\n\n\n\n<p><em>*BTC\/USD @ TradingView (spot and derivatives combined)<\/em><\/p>\n\n\n\n<p>Prior to last week&#8217;s record-setting Bitcoin volume days, the 6 previous highest volume days were from March 2020, May 2021, and June 2022.<\/p>\n\n\n\n<p><strong>Each of those three periods preceded a major Bitcoin bottom&#8230;<\/strong><\/p>\n\n\n\n<p><iframe loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto; max-width: 100%;\" src=\"https:\/\/4966a6ff.sibforms.com\/serve\/MUIEACzOxo45BY-FIBcqSHb7lN_tln5eBrSjJlMWm-7oNRR2Ujf-vpfnwjamD7bIGvt5NT4Ktk0cKXePo5xLUgFmN_9TOn4G2MKXBip-Sv6MiAwefyOeOX9PWUX2yH0Za9JKdg8VgEWhygHJ18g1mr0znAJVrTXxGwnutfeVnWKUUhwBaSiJ7fDZYRTUEVPK1j1mFpfnEMN_kAOE\" width=\"540\" height=\"685\" frameborder=\"0\" scrolling=\"auto\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_much_did_BTC_rally_after_previous_highest_volume_days\"><\/span>How much did $BTC rally after previous highest volume days?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Each of the six previous highest volume periods marked a Bitcoin bottom that led to a substantial rally in the following months. Check out the data below:<\/p>\n\n\n\n<p><strong>March 2020 &#8211; <\/strong>$BTC rocketed <strong>+163% higher in 2 months<\/strong> (3,800 to 10,000).<\/p>\n\n\n\n<p><strong>May 2021 &#8211; <\/strong>$BTC formed a price bottom, chopped sideways for 2 months, then ripped <strong>+80% higher in 6 weeks <\/strong>(29,300 to 52,600).<\/p>\n\n\n\n<p><strong>June 2022 &#8211; <\/strong> $BTC steadily gained<strong> +44% off the lows over 2 months<\/strong> (17,550 to 25,200).<\/p>\n\n\n\n<p><strong>November 2022 &#8211;<\/strong> <em>Hmmm??<\/em><\/p>\n\n\n\n<p>As the numbers above show, <strong>major volume surges have shown a tendency to occur before major bottoms<\/strong> <strong>in Bitcoin.<\/strong><\/p>\n\n\n\n<p>Again, remember that <em>volume speaks volumes!<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Will_the_bullish_volume_pattern_lead_to_another_bottom_in_Bitcoin\"><\/span>Will the bullish volume pattern lead to another bottom in Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If the above trend continues, then <strong>$BTC could be setting up for an <em>intermediate-term<\/em> advance.<\/strong><\/p>\n\n\n\n<p>Still, in the short-term, there needs to be some sort of impetus for the bulls to re-gain control.<\/p>\n\n\n\n<p>One positive is that we may soon be reaching the <strong>point of maximum pain in the crypto market.<\/strong><\/p>\n\n\n\n<p>As with any financial market, bottoms are often formed when there&#8217;s blood in the streets.<\/p>\n\n\n\n<p>Nevertheless, the rules of our <a href=\"https:\/\/morpheustrading.com\/services\/crypto-picks\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/services\/crypto-picks\">crypto trading system<\/a> prevent us from bottom fishing (a risky strategy).<\/p>\n\n\n\n<p>Rather, we prefer to wait for bullish price and volume confirmation to get lower-risk <a href=\"https:\/\/morpheustrading.com\/services\/crypto-picks\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/services\/crypto-picks\" target=\"_blank\" rel=\"noreferrer noopener\">crypto swing trade<\/a> entry points.<\/p>\n\n\n\n<p><strong>PATIENCE is the name of the game right now, but stay alert<\/strong> for opportunity if history repeats itself.<\/p>\n\n\n\n<p>Above all, <em>remember to trade what you see, not what you think!<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite recent weakness, Bitcoin has just flashed a powerful technical signal that hints at a potential Bitcoin bottom. <\/p>\n<p>Here&#8217;s why&#8230;<\/p>\n","protected":false},"author":1,"featured_media":14768,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[786],"tags":[],"class_list":["post-14728","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-picks-analysis"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/14728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=14728"}],"version-history":[{"count":31,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/14728\/revisions"}],"predecessor-version":[{"id":14854,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/14728\/revisions\/14854"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media\/14768"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=14728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=14728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=14728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}