Bitcoin Enters Record Oversold Zone... "The Bottom Signal from 4 Years Ago Appeared Again"

▲ Bitcoin (BTC)

Bitcoin (BTC) is showing an upward trend, surpassing $75,000. At the same time, a signal of a surge, which only appeared at the bottom of past record-breaking bear markets on the monthly chart, has been detected, drawing market attention.

Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, analyzed in a video released on April 14 (local time) that Bitcoin's Moving Average Convergence Divergence (MACD) index is currently in an oversold state similar to the bear market bottom in December 2018. Gambardello explained that the current trend, where Bitcoin dominance is rising and absorbing liquidity, is a typical sign of the beginning of a bull market. He particularly emphasized that if the weekly candle closes above $77,000, it would be a strong confirmation signal for further price increases.

In terms of market environment, the end of quantitative tightening and geopolitical risks may lead to short-term volatility. However, Gambardello diagnosed that such macroeconomic uncertainties could actually be the final adjustment phase before a bull run. Especially with the Purchasing Managers' Index (PMI) entering an expansion phase, strong economic growth is expected to support the rise in virtual asset values by the end of this year. The virtual asset market is currently in the most favorable position in history, aligned with the liquidity cycle.

In the altcoin market, Ethereum's (ETH) movement has been identified as a watershed that will determine the explosive growth of the entire ecosystem. Ethereum's crucial task is to break through the compression zone between $2,400 and $2,800. Meanwhile, Sui (SUI) is preparing for a full-fledged rebound, with a trend reversal signal detected in its weekly Moving Average Convergence Divergence (MACD) index. Sui's first milestone for an uptrend appears to be breaking above its 20-week moving average of $1.2.

In Cardano (ADA), a clear movement of institutions and whales aggressively building positions was observed while retail investors left the market. The number of whale wallets holding more than 10 million ADA increased by 5.2% over the past nine weeks, reaching a four-month high of 424. This accumulation by whales suggests that the market's fundamental strength is increasing. While institutional players build positions, the sentiment of retail investors remains subdued.

The virtual asset market currently possesses strong fundamentals, including securing legislative clarity, such as the CLARITY Act for the US cryptocurrency market, and establishing itself within the institutional framework. Macroeconomic factors such as the new Federal Reserve chairman to be appointed in May and the liquidity cycle are also highly likely to be favorable to the virtual asset market. The current chart formation shows a structural pattern very similar to the bottoming periods of 2019 and 2022. Experts are focusing on the intersection of technical indicators and fundamental analysis to devise future market response strategies.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*