Binance exchange has published a market study that concludes cryptocurrency prices could have already reached their lowest point, and that we are in the early days of an upward price trend.
The study, which was published on 11th April, examined various current phenomena and trends in the crypto markets. Among them was the correlation between Bitcoin and altcoin price data from 2014–2019, which confirmed that the 90 days to mid-March represented the longest period of high correlation in market history.
Historical charts suggest that such periods trigger trend reversals. For example, the 90 days to mid-March incorporated Bitcoin’s drop from $6,500 to around $3,100, and this has led Binance to suggest that markets could now rebound following the end of the record correlation period.
Binance theorised: “Having emerged from a period of the highest internal correlations in crypto history, the data may support the notion that the cryptomarket has already bottomed out.”
Binance’s report also provided insights about cryptocurrency’s investor makeup. It revealed that institutional investors control around 7% of the supply, roughly equal to one-thirteenth of the institutional control of the US stock market.
Tom Lee at Fundstrat has a similar view of the market to that of Binance. Last week he remarked that his so-called Bitcoin Misery Index was showing three-year high readings and offered this as proof that the market will have no further downside. “The main takeaway is […] further evidence the bear market for Bitcoin likely ended at $3,000,” he wrote on Twitter on Thursday.