Bitcoin could be reaching the bottom of its bear market, with analysts suggesting previous bottoms have presented “generational buying opportunities.”
Marcus Sotiriou, an analyst at GlobalBlock said Bitcoin is consolidating at around US$29,000, and that the relative strength index (RSI) has entered a period that has “historically preceded outsized returns on investment.”
RSI is a measurement used to assess the price of a stock, or in this case, cryptocurrency, and is at a level that on previous occasions marked a bottom.
Those previous times were January 2015, December 2018 and March 2020, and were followed by a bull rally.
As well as that, data from Glassnode, a blockchain data firm, also suggests that the crypto markets could be nearing a bottom.
“Previously, when Bitcoin enters this region it has presented four generational buying opportunities,” Sotiriou added.