The primary concern for investors is determining whether an asset has reached its low point after a prolonged period of decline.
Recent market movements indicate that bitcoin (BTC) might have identified its floor just above $76,000 on March 10. This shift appears to echo previous bottoming patterns seen in the near past.
During this correction, bitcoin experienced a 30% drop from its peak of $109,000 on January 20. After touching its lowest point on March 10, it exhibited higher lows on either side of that date—around $78,000 on February 28 and just over $81,000 on March 31—creating a triangular bottom formation.
A similar scenario unfolded during the yen carry trade unwind in August 2024, when bitcoin found its bottom near $49,000 on August 5. Again, higher lows were observed on both sides: July 7 and September 7.
Another case occurred with the introduction of U.S. spot bitcoin ETFs in January 2024. Bitcoin saw a 20% pullback, dipping below $40,000 on January 23, while also showing higher lows surrounding that date.
Omkar Godbole, the managing editor at CoinDesk Markets, highlights potential indicators that bitcoin may be nearing its bottom, pointing to the formation of a bullish trend. “The latest pattern shows a transition from lower lows to higher lows, suggesting seller exhaustion, similar to bottoming patterns we saw in August and early 2024,” he says.
“There’s a case to be made for renewed bullish momentum—although external factors, like tariffs from Trump, could potentially interfere with this trend,” Godbole adds.