Bitcoin bloodbath hits a historic bottoming zone — contrarian bounce play on BTC
Bitcoin is down bad, but technical analysts say it is sitting right at a historical bounce-back zone. Meanwhile, the exact companies that were dragging crypto down are fixing their debt issues, and Wall Street's biggest player just doubled down on crypto technology.
Idea
The torrent of negative crypto news may be creating a classic contrarian buying opportunity. Cointelegraph notes that Bitcoin is now within 10% of its 'realized price'—a historical bottoming zone that has marked the best buying opportunities of past bear markets. At the same time, Strategy (formerly Microstrategy) just overhauled its capital structure to end 'death spiral' fears by adding cash reserves and enabling buybacks, which should remove a major source of forced selling pressure that weighed on the market. Most importantly, CoinDesk reports that BlackRock is pushing deeper into decentralized finance by integrating yield tokens for its institutional clients. This means while retail investors panic, Wall Street's largest asset manager is expanding its crypto infrastructure, suggesting the long-term floor is much more secure than the short-term panic implies.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| BTC | LONG | +2.63% ✓ | +6.74% ✓ | — |
Price change since publication · updated Jul 11