On the left is Bitcoin's chart at the December 2018 bottom and on the right is Bitcoin's current chart. Notice how similar they are.
On the bottom is the "Stochastic Heat Map" indicator. When price is extremely overbought the heat map appears red. When price is extremely oversold the heat map appears blue. In this case, Bitcoin's heat map is entirely blue - as oversold as it ever gets. Notice that the heat map looks the same now as it did at the December 2018 bottom.
If you compare the plot line (orange line) on the Stochastic Heat Map from December 2018 to the current chart, you will see that it is currently approaching the same value that was reached at the bottom in 2018.
While anything can happen, if we use past data to extrapolate to the current situation, we could conclude that Bitcoin is very close to a significant bottom.
I like your analysis. Could you please let me know where you have used Bitcoin in the past or how you are planning to use it in the future if you buy/held onto Bitcoin?
SpyMasterTrades
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@rock1986, Thanks! I have never used Bitcoin to purchase anything yet. Right now I am cautiously accumulating up to 10% of my portfolio in Bitcoin and other outperforming cryptocurrencies (e.g. Ethereum, Solana, Polygon) as diversification to my portfolio. I have thoroughly checked the charts on these and they are worth incorporating into my portfolio. They are growing along a log curve and several of them have corrected down to their golden ratio. So I feel it would be a huge missed opportunity if I weren't accumulating. Right now these currencies are down in part because of the Fed reducing the money supply, which strengthens the dollar relative to all other currencies, but this is a temporary factor, and the money supply will soon normalize. I believe that the blockchain will become the primary means of barter and exchange in the future. Similarly, non-fungible tokens (NFTs) will become the primary means of authenticating ownership or legal rights in the future. In my current job, I'm already seeing rapid adoption of NFTs, though few people out there understand or know much about NFTs. Even those who are adopting it don't realize that they're using NFTs.