Crypto market participants had to watch another rapid slide as Bitcoin (BTC) dipped to the $58,000 range. Altcoins and tokens had even deeper corrections, which caused traders to seek signs that the market would stop bleeding or that a market bottom was not imminent.
The slide of all crypto assets caused traders to ask whether there are signs of the market finally reaching a local minimum. Social media volumes for “bottom” reached an all-time high, after an active year of volatile trades.
Occasionally, social media traffic for the “market bottom” narrative did not lead to a price breakout. More often, after social media showed more activity for the term, market prices rallied again in the short term.
The current find extends the latest reports from Santiment. The market cooled down, with crowd moods seeing BTC as bearish. At the same time, whale buying quietly resumed on Bitfinex and from other sources.
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In 2024, the Bitcoin (BTC) narrative dominated the market, and looking for the BTC bottom was key. Altcoins and tokens still depend on overall BTC stability, in addition to stable performance from Ethereum (ETH).
This time, social media activity coincided with signs that the tide may be turning for BTC, with renewed buying from ETF investors and well-known crypto whales. The renewed buying followed a turbulent period, which liquidated multiple long positions on the downside. Additionally, the market had to absorb selling from miners, older big holders, and possibly from ETF holdings.
Concerns about a market bottom at this price range also underscore fears that the bull run may be ending. After a 490-day bear market, crypto projects aim for a longer bullish period and wait for signs that can stop the price slide.
BTC prices are still in the “buy” zone based on the Rainbow Chart prediction model, which has so far proven valid. However, the model does not guarantee an immediate bounce or a breakout. In the past year, BTC managed to score a new price record, without even touching the “bubble” zone on the Rainbow Chart, sparking hopes of an even higher price record.
Google Trends searches on the market bottom picked up in June
Searches for “Bitcoin bottom” also accelerated in June. Queries revived after BTC started dipping closer to $60,000. The trend for “BTC bottom” looks similar.
Interest in timing the market bottom for BTC accelerated in June, after the price slid closer to $60,000. Source: Google Trends
Timing the market is key for both short-term positions and charting the potential supercycle leading to new all-time highs. The market bottom does not always translate into an immediate rally but may be followed by a period of consolidation. Predictions see the sideways movement in the $50,000-$75,000 range before another upward leg to a new price high.
Is an altcoin market coming soon?
The altcoin market is different in 2024, as some of the older assets have recovered in dollar terms, but are yet to print new highs. Some of the coins and tokens are also forgotten, replaced by more active assets or earnings sources.
Yet, as a whole, the altcoin market is now in a similar consolidation area. A market-wide breakout to new highs has not yet happened. For an altcoin rally, there are also expectations of a new all-time high for ETH first.
Regarding altcoins, some traders are trying to time local bottoms for smaller assets, which offer more active appreciation. The meme sector has a different trading logic compared to altcoins and can stage 20% recoveries in a single day.
Also Read: Runes are Taking Off: Bitcoin-Based Tokens Get Performance Boost on Exchanges
Social media personalities are also confidently stating that “the bottom is in”. However, in the past, a BTC bottom has been announced just under $70,000, before a deeper correction. The market remains cautious, as the next upward leg is set to reach ambitious targets.
For other traders, a shift to negative funding rates is a significant signal for a market bottom. The negative interest rates on BTC support long positions, which are now gaining, while short-sellers are pressured. This funding rate condition also applies to blue chip tokens and top meme assets and may lead to a rapid appreciation in the short term.
Cryptopolitan reporting by Hristina Vasileva
