Market Three Signs That Bitcoin Is Finding Its Market Bottom

Bitcoin’s selling pressure may be easing as momentum stabilizes, miners capitulate, and liquidity conditions turn supportive.

Bitcoin (BTC) may establish a local bottom after dropping by over 35% from its record high of around $126,200 established two months ago, based on a mix of technical and on-chain indicators.

Momentum, miner capitulation, and liquidity indicators point to fading selling pressure.

Macro liquidity suggests a BTC recovery could begin within the next 4–6 weeks.

As of December, Bitcoin’s weekly Stochastic RSI had turned up from oversold levels, a setup that has historically appeared near key inflexion points, before the price rebounded, as highlighted by trader Jesse in the chart below.

Similar bullish crosses emerged in early 2019 (after BTC bottomed near $3,200), March 2020 (the COVID crash low near $3,800), and late 2022 (around the $15,500 cycle low). In each case, momentum shifted first, while price lagged.

Adding to the signal, Bitcoin’s three-day chart is printing a bullish divergence where price made a lower low, but momentum did not.

This pattern also appeared ahead of the mid-2021 correction low and the FTX-driven bottom in 2022, both of which preceded multi-month recoveries.

These signals suggest selling pressure in the Bitcoin market may be exhausted in the near future, a condition more typical of market bottoms than temporary relief rallies.

Bitcoin’s hashrate fell 4% in the month to Dec. 15, a development VanEck analysts Matt Sigel and Patrick Bush viewed as “a bullish contrarian signal” linked to miner capitulation.

Source: CoinTelegraph