Bitcoin is currently demonstrating characteristics indicative of a potential market bottom, according to on-chain analyst James Check. Despite trading around $63,000, a level that may lead to further declines, Check emphasizes that the passage of time, rather than immediate price fluctuations, will be crucial for investors.
Check noted that various mean reversion models, both technical and on-chain, are aligning with historical bottom formation levels typically observed after significant price capitulation events, such as those seen in December 2018 and June 2022. He articulated this perspective in a recent analysis, highlighting the importance of patience for bitcoin investors.
“Every mean reversion model, from technical to onchain is trading within bottom formation levels, typically seen after the price capitulation event,” Check stated.
As bitcoin’s price fluctuates, Check acknowledges the possibility of further declines but maintains that the current market environment is indicative of a de-risked setup. He referenced the 2022 bear market, where bitcoin reached a low of approximately $15,600 in December, although it had effectively bottomed six months earlier at around $17,600. This historical context serves to illustrate that significant price recovery often requires time.
“This is literally what a de-risked setup looks like for bitcoin,” Check concluded. “If you’re not actively accumulating bitcoin at this stage, then when?”
In related news, Cipher Digital, a company previously focused on bitcoin mining, has announced a rebranding as it shifts its focus to high-performance computing. This strategic pivot comes as the company reported fourth-quarter earnings that fell short of analysts’ expectations, leading to a 5% drop in its shares during pre-market trading.
- Cipher Digital’s revenue and adjusted earnings per share (EPS) were below estimates.
- The rebranding reflects a transition from bitcoin production to high-performance computing.
- The company’s shares experienced a decline in pre-market trading following the earnings report.
Bitcoin is showing potential signs of recovery, according to analyst James Check, who emphasizes that time will be a critical factor for investors. Meanwhile, Cipher Digital has rebranded and shifted its focus amid disappointing earnings.