Alex Thorn, Galaxy’s head of firmwide research, said he believes Bitcoin (BTC) has bottomed; Galaxy’s review found no close more than 8.4% below a reclaim level in four earlier cases during the following year.
Thorn said, “We believe the bottom is in.”
Galaxy’s comparison covered four earlier instances in which Bitcoin returned above its 50-week average after spending at least 20 weeks below it. Over the year after each return, its lowest closing price remained within 8.4% of the level where it crossed back above the average.
In the current case, Bitcoin’s weekly close moved above the average in the week ended Sept. 20; the close for the week ended Oct. 18 was the fifth in a row above it. The comparison describes past market behavior and does not establish what will follow the latest move.
Galaxy had previously assessed that Bitcoin’s bear market ended in June. Its Oct. 22 outlook said technical and positioning data pointed to accumulation, as covered in the earlier EconoTimes report.
