As Bitcoin (BTC) continues to climb higher from its December 2018 lows near $3,100, more and more people become confident the Bitcoin bottom is behind us.
Backing this belief up with top-of-the-line analysis is the digital asset research firm Delphi Digital, who released their monthly Bitcoin price outlook report with research indicating that Bitcoin’s price has, in fact, reached a bottom for this market cycle.
How Do We Know Bitcoin Already Bottomed?
Delphi Digital is confident the Bitcoin bottom is in, due to their findings in Bitcoin’s blockchain analysis, macroeconomic trends, and various forms of technical analysis.
One of the biggest indicators leading analysts to believe that Bitcoin has reached a bottom is from their analysis of Bitcoin’s blockchain, specifically the age distribution of unspent transaction outputs (UTXOs). This is a measurement of how long users have held Bitcoin without moving it at all.
Per the report:
“Analyzing Bitcoin’s aggregate UTXO age distribution over time provides insight into the buying and selling patterns of previous market cycles. This allows us to forecast where we are in relation to prior cycles and what we can likely expect going forward.”
According to the report, the 1 year+ holder rate during Bitcoin’s potential bottom in December is within 1% of the 1 year+ holder rate during the previous cycle’s bottom in 2015. Therefore, this is a strong indicator that the bottom was reached in December.
As previously reported by IIB, the prominent crypto market analyst Willy Woo says Bitcoin bottomed in December 2018 as well. In fact, Woo was the first analyst to conduct Bitcoin on-chain analysis and say that the bottom has been reached due to his analysis of the unspent transaction outputs (UTXOs).
Joining Woo and Delphi Digital in their thoughts that Bitcoin already reached the bottom is another prominent crypto analyst MustStopMurad, and many others.
Do you think we have already seen Bitcoin’s bottom? Let us know what you think in the comment section below.