A three-year low was hit in the market when FTX crashed, wiping out billions in customer deposits. Following the FTX fiasco, Bitcoin fell to $15,500 and appeared to be heading considerably lower. Bitcoin has since recovered and shown considerable returns and is now near the $23,000 mark.
However, the market seems divided; some analysts believe that Bitcoin’s low point was reached in November 2022, while others predict increased volatility and an even lower low point in the near future.
According to a study posted by an anonymous researcher as @TechDev 52 on Twitter, Bitcoin may be on the verge of another indication-based boost that has anticipated its upsurges throughout history.
The momentum indicator known as the Moving Average Convergence/Divergence (MACD or MAC-D) is once again in the “green zone”, which usually indicates “bullish” emotion.
The analyst also monitored the evolution of the ten-year Chinese government bond rate (CN10Y) against the US dollar index (DXY). Just recently, this indicator crossed its 1-year moving average line.
In 2010, 2012, 2013, 2017, and 2020, this combination of events was a reliable indicator for Bitcoin. During its last appearance, the price of Bitcoin increased by 8 times between Q4 2020 and Q1 2021.
After the US jobs report on Friday, bitcoin fell around 2% to trade at around $23,250. The US Bureau of Labor Statistics said that in the first month of 2023, the labor market added 517,000 jobs. The data showed an unexpected increase, surpassing the 188,000 economists predicted.