Bitcoin Bottom Prediction: 5 Signals to Watch for the Next Bull Run

 

Where is the Bitcoin Bottom? A Smart Investor's Guide to Mastering Bear Markets

In the world of financial markets, especially crypto, one question dominates search engines and investors' minds: "When will the crash end? And where is the true bottom?". Answering this requires more than just looking at a chart; it demands a deep understanding of market psychology, historical cycles, and on-chain data.

In this guide, we reveal the points many overlook regarding bottom identification and strategic liquidity management (USDT).

1. Why is Bitcoin Falling Now? (Beyond the Charts)

Before hunting for the bottom, we must understand the catalysts. This isn't just a technical correction; it's driven by major macro-economic factors:

• Dollar Liquidity (M2 Money Supply): There is a tight correlation between global liquidity and crypto surges. The current dip reflects liquidity contraction. The true bottom usually forms when the Fed hints at expansionary monetary policies.
• CME Gaps: Historically, Bitcoin tends to "fill" price gaps left on the futures market. We are closely monitoring any unfilled gaps in the $60k and $70k regions.

Impact of M2 Money Supply on Crypto

2. The Quest for the Bottom: Lessons from History

While others just mention the drop, we analyze the data:

• The 80% Rule: In the 2017 and 2021 cycles, Bitcoin retraced roughly 80% from its peak. If history repeats perfectly, we could see levels between $35,000 - $40,000.
• The ETF Factor (Institutional Impact): Is an 80% drop still possible? With giants like BlackRock involved, the downside might be more limited. The previous cycle’s peak ($60k region) now acts as a "steel wall" of support.

BTC Halving Cycles and Price Bottoms

3. Three "Hidden" Indicators to Identify the Floor

To outperform the average trader, watch these metrics:

1. Production Cost (Mining Cost): Bitcoin rarely breaks below the cost of mining. This price represents the "absolute floor" because miners stop selling below it.
2. Weekly RSI: When the Relative Strength Index on the weekly timeframe hits 30, get your wallet ready. Historically, this signal marks the end of the bleeding.
3. Capitulation Psychology: A bottom doesn't form while there is still hope. It forms when "despair" takes over and on-chain data shows investors selling at significant realized losses.

4. The "Pro Investor" Strategy: The Triple Portfolio Approach

I personally manage the market by splitting my goals into three portfolios to ensure longevity:

• The Investment Vault (Long-term): Dedicated to sniping major bottoms. Only opened during historical signals (like RSI 30).
• Mid-term Portfolio: For swings lasting weeks or months, like our successful Ethereum trade last March.
• Day Trading Portfolio (The Cash Flow): The genius solution for those who don't want to wait for the "Bull Run." Through Free Copy Trading, you can profit daily whether the market is up or down.

5. How to Use the Magic of DCA (Dollar Cost Averaging)

Instead of gambling with a single entry, use smart distribution. If your budget is $100,000, distribute it as follows:

Price Level (Hypothetical)	Capital Allocation	Entry Objective
$62,000	30%	Testing previous cycle peak support
$50,000	30%	Strong psychological and technical support
$38,000	40%	Potential Historical Bottom (80% Zone)

The Result: Your average entry price will be in the $40k range, making you profitable as soon as the first real relief rally begins.

6. Final Advice: Don't Waste Years Waiting for the "Season"

The market can move sideways for two years. Will you just wait? A smart investor creates their own opportunity. Learn to trade or follow experts. We provide free tools to help you navigate this:

• Free Copy Trading: Automatically mirror daily scalp trades.
• Signals Channel: For real-time analysis of Bitcoin and Altcoins.

Summary: There is no "magic price point" for the bottom; there is a "bottom zone." Stay liquid, don't FOMO at a single point, and let day trading drive your daily profits until the big season returns.

 

Technical Signals for Bitcoin Bottom

FAQ: Bitcoin Bottom & Market Future

1. Can Bitcoin drop to zero?

Practically, this is nearly impossible. Bitcoin is backed by major institutions, ETFs, and a multi-billion dollar mining infrastructure. As long as there is demand and production cost, it will maintain strong value.

2. What is the difference between a "Technical Bottom" and a "Psychological Bottom"?

• Technical Bottom: Hard support levels (like the 200-week Moving Average).
• Psychological Bottom: The moment of total despair (Capitulation) where retail traders sell at a loss. This is usually the best time to buy.

3. When does "Altcoin Season" begin?

Typically, it starts after Bitcoin stabilizes at its bottom and begins to rise. As Bitcoin Dominance drops, capital flows into Altcoins.

4. How do I know the crash is officially over?

The strongest signal is a Bullish Divergence on large timeframes (Daily/Weekly). This happens when the price hits a new low, but the RSI hits a higher low, accompanied by a surge in volume.

Disclaimer: The content in this article is for informational and educational purposes only and is not intended as financial, investment, or trading advice. Cryptocurrency markets are extremely volatile and can be exposed to high risk. You must conduct your own research or seek advice from an independent financial advisor. The author of this article and the website are not liable for any financial losses incurred while trading.