Bitcoin Price Rally Imminent as 'Crypto is Dead' Narrative Fails to Materialize

The 'crypto and Bitcoin is dead' narrative has resurfaced on social media platforms, but several indicators suggest that current momentum may be part of a macro bottom. According to blockchain research platform Santiment Intelligence, crypto is increasingly being paired with words like 'dead, over, and finished' on social platforms.

Delays in the CLARITY Act proceedings have hurt sentiment in the industry, with odds of it passing into law this year falling below 22%. Traders are now resorting to shorting when prices near $67,000 and longing when they dip to $62,000.

Historically, such a trend has coincided with crypto price rallies contrary to retail crowd reasoning. Extended price consolidation is draining patience from retailers, leading to emotional dumping while strong hands accumulate at discounted prices.

Supporting indicators include the Tom DeMark (TD) Sequential indicator flashing a buy signal on Bitcoin's monthly chart last month, and Bitcoin trading near its 50-month simple moving average since 2014. This multi-year support level has repeatedly aligned with cyclical lows.

The Chande momentum oscillator is back to -71, a point associated with the ending of capitulation. While Bitcoin may take time oscillating between $60,000 and $67,000, multiple signs indicate that the floor is in.