In the wake of Bitcoin’s decline to the $60,000 mark within the cryptocurrency landscape, two notable figures in the market have provided insights indicating that a potential bottom may have been established.
Kip Herriage, who is both the founder and managing partner at Vertical Research Advisory, expressed his belief that Bitcoin has reached its lowest point. He highlighted a significant sell-off peak related to BlackRock’s spot Bitcoin ETF, known as iShares Bitcoin Trust (IBIT).
Herriage observed that during a period when trading volumes on IBIT surged to unprecedented levels, Bitcoin’s Relative Strength Index (RSI) dropped to one of its most oversold positions ever recorded. Additionally, he mentioned that concurrently, the Bitcoin Fear & Greed Index plummeted to 5—its lowest historical figure.
According to Herriage’s analysis through VRA systems, IBIT has now entered an “extremely oversold” territory. He remarked, “The rubber band has been stretched too far. Consequently, we believe we have hit bottom levels and are ready to buy.”
Conversely, Jurrien Timmer noted that last week’s drop of Bitcoin down to $60,000 aligned with a support zone he had previously identified. Timmer recalled his earlier analysis from several months back where he suggested that the four-year bull cycle might be concluding.
Timmer pointed out that this recent dip represents a relatively minor correction compared with previous “crypto winters.” He asserted that over timeBitcoin has evolved into what can be considered a “commodity currency,” implying price fluctuations could become less extreme than they were historically.
While acknowledging uncertainty about whether $60,000 marks an absolute bottom for prices moving forward,Timmer shared his prediction asserting this level likely signifies it. He anticipates that after several months characterized by sideways movement and volatility,a new cyclical bull market could emerge. Citing “mathematical congruence” from prior cycles,Timmer stated while past performance does not guarantee future results,new highs remain feasible over time.
*This should not be construed as investment advice.