Bearish Market Bottom Fractal, Bitcoin Could Stumble and Run Soon

There is no clear indication of the price of bitcoin, except for the uncertainty. Investors are baffled as the first cryptocurrency by market capitalization tracks a crab-like price movement at the time of writing, BTC is trading at $35,935 with a sideways movement across the board.

BTC is moving sideways in the daily chart. Source: BTCUSD Tradingview

The most bullish expert believes that Bitcoin could form a bullish reversal (BRR). In 2018 and 2019, the price of BTC This chart structure formed after major corrections and was able to recover the lost area.

Anonymous analyst comparison “Stillman” BTC price The 2018 3-day chart versus the current 10-hour chart and found similarities pointing to the bottom of the Bump and Run reversal.

Anonymous trader Polar Hunt agreed with the analyst’s conclusion. The trader believes that “huge drops” in the price of Bitcoin are causing apathy among investors. This leads to the formation of the reversal and retracement reversal.

As both schemes show, this scheme structure consists of 4 phases: the beginning phase, which would have formed in the previous months. Later, the bulge phase after the price collapses and begins to accumulate.

This phase could extend for months with BTC price reaching lows in a narrow range and slowly recovering previous highs. During this stage, the price forms a bowl-like structure as it rises back to the levels seen in the first stage.

When the price starts to break out of the pot range, the histogram enters a trendline bounce before entering an uptrend towards new highs, as shown below.

The structure is still forming and should be validated, but if it is This reinforces points to a long season of bad news for bears.

Source: B.Biddles (@thalamu_)

On-chain Bitcoin activity is a hit

In order for the BRR to consolidate, the price of BTC needs to be strengthened. However, on-chain activity indicates that the demand for the number one cryptocurrency by market capitalization has declined.

Data from Glassnode indicates that Bitcoin network activity has been on the downside. Before the crash, Bitcoin had about 1.15 million daily active addresses. This number coincides with the peak price of BTC of 2017, which saw a drop of 18% during the sell-off last week.

Now, the number of daily active addresses is about 0.94 million. Analyst said:

This fall accounts for about half of the decline seen in 2017, indicating that while activity has slowed, there is more demand than after the macro peaks of the previous cycle (or perhaps more…

Source: Glassnode Insights

The number of entities, such as exchanges and miners, witnessed a similar decline and reached 250 thousand after declining from 375 thousand.

Not surprisingly, the volume of US dollar-denominated remittances settled with Bitcoin has fallen by 65%. Checkmate concluded that the change-adjusted transfer volume has been reduced from $43 billion to $15 billion per day. analyst added:

(…) The 2017 aftershock is the only event of a similar magnitude where on-chain stable volume has fallen by 80% over a period of about 3 months.

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