Is Bitcoin Price Finally Close to the Bottom?

Bitcoin opened the day at $7,600 and began a sharp decline to find lows of $6,800 - a loss of just over 10%. Price has since been pushed back across $7,000 with buyers showing interest in prices below the $7K handle.

As price fell towards previous support at $7,600 and the 100-week moving average, Bitcoin found no support and sold off beyond the 61.8% retracement and down to the 65% retracement of the 2019 bull run where it has found some intermediate support.

BTC price failed to find support at $7,600 and fell straight through the previous support at 7,400, which was the launchpad for the move to $10,000.

Based on technicals and trends alone, it seems as though there is a good argument for Bitcoin finding some buying interest in the $6,000 price range.

The premium on the futures market has been eliminated and is now in backwardation, meaning spot price is above the futures price.

This is indicative of bearish sentiment, which can often also be an early sign that the decline in price may be close to subsiding.

The RSI is now heavily oversold and there's also been negative funding where shorts pay longs to be short, which has typically been indicative of a bottoming price due to the overly bearish sentiment in the market.

The bounce in price from the lows is emphasized on the 4-hour chart and the eyes will be on this level for support.

Again, Bitcoin price typically has an inverse relationship with this index and could highlight a temporary bottom may be nearing, although the index has seen lows as far as 5 on the scale.

Bitcoin bulls have clearly lost key support at the 100-week moving average, which has spelled trouble in the past and this accelerated today's price drop.