Is This The Bottom?

 _{Authors: Trav and TheOpenChain}

Things are looking grim.

It is gut wrenching to see our ports go so red, so quickly.

All hope may not be lost. This may actually be a good sign.

Here are 4 charts that will get you excited.

1. Social Sentiment

This is one of the most consistently accurate indicator that predicts tops and bottoms.

The Rule: massive positive sentiment signals the top. Massive dips in sentiment signal the bottom.

It’s clear as day that the biggest spikes are correlated.

And this dip triggered the deepest dip we’ve seen all year. Bullish.

2. Funding Rates

This metric tells us how leverage traders are positioning themselves.

Green means they’re betting price will go up.

Red means they’re betting price will go down.

The Rule: Price wants to take these traders out, to take their liquidity. So when too many traders are going long, price dips, and vice versa.

Right now we’re seeing the highest levels of bearish traders that we’ve seen all year. Bullish.

3. Wyckoff Accumulation

Richard Wyckoff was a stock market guru back in the day. He proposed their ideas of accumulation and distribution. You can read all about it here.

An accumulation happens before price makes new highs.

Which is bullish.

One signal that I look out for to identify accumulations are Springs. This is where price leaves the trading range as a final shakeout before making new highs.

It’s important that price exits and re-enters the trading range quickly, which it has for Bitcoin. It was also violently rejected with MASSIVE volume. Let’s take a closer look at this.

4. Volume

This one is short and oh so sweet.

Huge spikes in volume = huge conviction.

And check out the volume that came in to defend this bottom.

Absolutely MASSIVE.

This is a very encouraging sign.

5. Whales

Another easy principle to understand.

Whales move the markets. When they buy, price goes up. When they sell, price goes down.

The pink line shows all of the wallets holding between 10-100k BTC.

And guess what?

They’ve been buying this dip.

Closing Thoughts…

None of this guarantees that price will rise. They do increase the odds though.

My advice to you is don’t let greed and fear consume you. Plan your trades, set your stop loss, and when you see it, take your freaking profits!!

Join us this Friday for a deeper conversation, with some absolute legends, about what Crypto may do in the coming months.

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