Has wipeout in cryptocurrency Bitcoin run its course? What charts show

livemint.com:

The wipeout in Bitcoin may have run its course, a range of technical indicators suggest.

Momentum measures and insights from options bets signal ebbing selling pressure and a possible trading range of $20,000 to $25,000 -- though the usual caveats apply about the mercurial nature of cryptocurrencies.

The largest digital token has slumped about 70% from a November record and was little changed at $21,343 as of 8:38 a.m. Monday in London. It slid below $18,000 earlier this month before retaking the closely watched $20,000 level.

Tightening monetary policy, withering speculative ardor and collapsing digital-asset projects have spurred a broad crypto rout in 2022. But the mood in global markets is turning less dour on tentative hopes that the price pressures driving interest-rate hikes may be cresting.

The lessons of Bitcoin’s past swoons suggest it’s in the vicinity of its bear-market low, according to Glassnode. This “bear market is now firmly within historical norms and magnitude," the blockchain analytics firm wrote in a note.

Capitulation

A widely followed DeMark technical indicator known as TD Sequential suggests much of the Bitcoin selloff is behind us. The study uses a method of counting applied to chart patterns to try to anticipate when a market trend has run its course. Bitcoin has printed the maximum 13 downside count, which proponents of the study would argue presages a reversal. DeMark studies in the past have identified shifts in Bitcoin’s prevailing trend.

Unusual Selloff

Another popular charting method is the so-called linear regression channel. This technique seeks to identify statistically unusual deviations from a line that best fits a series of Bitcoin prices. In the analysis here, Bitcoin plunged to