Analysts Predict We Might Have Already Seen Bitcoin Price Bottom

The analytical firm Glassnode has evaluated in its latest bitcoin (BTC) market report the underlying support that contributed to establishing the recent lows in its price. At the time of publication of this article, the cryptocurrency is in its third week of rally.

To understand us, the support works as a kind of floor with which the price of an asset collides to generally bounce or stabilize. In other words, the prices of a cryptocurrency do not usually go below this zone, because traders consider that selling it cheaper would be undervaluing it.

The study refers to the upward trend that began on the 24th of January, which led the price of bitcoin to break the psychological barrier of $40,000 in recent days and stay above that level.

“With numerous macro and market headwinds, the question is whether this is the bottom, or simply a local bottom within a longer bear period”, says Glassnode .

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The study highlights that during 2021 and 2022 the price band between $30,000 and $40,000 has represented strong support for bullish positions and traders now expect that momentum in the chain to push the price higher.

With the rebound of the last few days in the price of bitcoin, liquidations of short positions begin to take place again, which reverses the dominance of long liquidations that had been registered since the end of last December.

Glassnode indicates that a new price push is about to take effect.

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And it is that the previous rise is given by the data from the Consumer Price Index (CPI), which show that the US inflation rate exceeded 7% in December, reaching its highest level since the 1980s. Not only bitcoin, but many others also responded positively to this news.

Last week we saw another boost from bitcoin when news broke that the Federal Reserve will pull some stocks of your balance.

This time it actually caused a price increase. Jerome Powell, chairman of the Federal Reserve, said interest rates will stay low. The rate of BTC skyrocketed due to this, among other things.

We will have to wait and see how the price of BTC finally evolves and if these analyzes and many others are right.