Crypto Market Bottoms Out as Bitcoin, Ethereum Reclaim Key Moving Averages

Starkiller Capital, a quantitative investment firm, says the crypto market has bottomed out. It notes that Bitcoin and Ethereum have both reclaimed their 200-day moving averages for the first time since the end of the last cycle.

The peak-to-trough drawdowns for Bitcoin and Ethereum were 54% and 70%, respectively. Historically, every prior time Bitcoin has reclaimed this level, it marked the end of the bear market.

Starkiller closed its entire short side of its book last month, a decision it called the 'clearest expression' of its conviction.

The firm expects that the market may pause near $80,000, where the declining 200-day moving average likely needs to be tested from above before the rally continues. Beyond Bitcoin, Starkiller expects high dispersion rather than a broad rally lifting all crypto assets equally.