What's up, family! Pay close attention because the game board just sent a technical signal that we cannot ignore: Bitcoin is stopping its bleeding, and those who know how to move money are starting to position themselves. 📉➡️🚀
It's no secret that seeing the leading currency fall more than 35% from its highs of $126,200 makes anyone doubt, but if we look under the hood, the engine is showing signs of life. The first big key is the exhaustion of sellers.
Momentum indicators, like the stochastic RSI, are doing exactly the same thing they did in 2019 after the bottom of $3,200 and in 2022 after the chaos of FTX. Essentially, the momentum has already turned positive even though the price still looks dragged down; it's like when a car starts to accelerate but the tires are still spinning in the mud.
But it's not just trading charts; it's also pure real economy with Bitcoin miners. When the "hashrate" (the network's computing power) drops, as it did this December by 4%, it means that the miners who were not efficient have already "thrown in the towel." Historically, every time miners capitulate, Bitcoin skyrockets. The data doesn't lie: 77% of the time this happens, we see average returns of 72% in the following six months. ⛏️💎 It's the natural cycle where only the strongest remain, and the selling pressure disappears.
Finally, the issue of global liquidity is the wind that will fill the sails. There is a technical indicator called NFCI (National Financial Conditions Index) that tells us that money is starting to flow again.
According to analysts, we are about 4 to 6 weeks away from this liquidity "hitting" directly on the price. With the Federal Reserve making moves that inject flow into the system, the scenario looks a lot like the 40% rally we experienced in 2019.
We are at that point of maximum tension where many expect it to drop to $25,000 out of fear, while technical indicators are screaming that the bottom is already here. In this market, patience pays more than adrenaline.
If history repeats itself and liquidity is about to enter strongly, are you going to wait for the price to return to six digits to convince yourself that the bottom has already passed?$BTC
