Bitcoin's 'Dead' Narrative Faces Challenge from Bullish Indicators
The crypto market has been plagued by 'Bitcoin and crypto is dead' chatter on social media platforms, but indicators suggest this may be part of a macro bottom.
According to Santiment Intelligence, there's been an increase in conversations pairing 'crypto' with words like 'dead,' 'over,' and 'finished' on X, Reddit, Telegram, and other platforms.
This sentiment is partly driven by Bitcoin's attempt to retest the $63,350 level, which could lead to a break below $62,500 if it fails. Additionally, delays in the CLARITY Act proceedings have hurt industry sentiment, with odds of its passage this year falling below 22%.
Traders are now shorting when prices near $67,000 and longing when they dip to $62,000. Historically, this trend has coincided with crypto price rallies, despite retail crowd reasoning. The extended price consolidation is draining patience from retailers, leading to emotional dumping while strong hands accumulate at discounted prices.
The Tom DeMark (TD) Sequential indicator flashed a buy signal on Bitcoin's monthly chart last month, which has successfully identified market bottoms in the past. Furthermore, Bitcoin has been trading near its 50-month simple moving average since 2014, a multi-year support level that 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 oscillate between $60,000 and $67,000 for some time, multiple signs are indicating that the floor is in.