In the turbulent cryptocurrency market, Bitcoin's second bottoming out has become a hot topic among investors. With the sharp fluctuations in the market, people began to think about the meaning behind this phenomenon. From technical analysis to market psychology, what investment opportunities and risks does Bitcoin's second bottoming out contain? This article will deeply analyze the phenomenon of Bitcoin's second bottoming out and explore its possible impact and response strategies.

As the leader of the cryptocurrency market, Bitcoin's price fluctuations have touched the hearts of investors. The second bottoming out means that the price hits the bottom again after a decline, forming a relatively stable price support. This phenomenon is often regarded as a confirmation of the market bottom, providing investors with an opportunity to buy on dips. However, compared with the first bottoming out, the second bottoming out is more challenging and requires investors to remain cautious.

In addition, the global macroeconomic situation also has an important impact on Bitcoin's second bottoming out. The loosening and tightening of monetary policy and the turbulence and stability of geopolitics may all become external factors for Bitcoin's price fluctuations. Investors need to pay close attention to global economic trends and adjust their investment strategies in a timely manner. As a safe-haven asset, Bitcoin's price fluctuations are often greatly affected by the macroeconomic environment, and investors need to respond with caution.

In the market where Bitcoin hits its second bottom, investors face both risks and opportunities. Through a comprehensive study of technical analysis, market psychology and macroeconomic factors, investors can better grasp market trends and maximize investment returns. However, investment has risks, and investors need to act cautiously and make rational decisions to remain invincible in the turbulent market. Bitcoin's second bottoming out is both a challenge and an opportunity. Only by continuous learning and growth can we go further on the road of investment.

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Using Bitcoin for trading seems to have become a popular trend. As a popular cryptocurrency, Bitcoin trading is becoming more and more common in the mainstream. If you are still a newbie in the market, you should sit down and observe the market, discover the laws of the market through observation, and slowly explore how to invest, rather than jumping in directly. In addition, you should also understand some industry jargon in the Bitcoin market, just like the second bottoming out that I will introduce to you today. Only by understanding it clearly can you know what this second bottoming out of Bitcoin means? Only then can you have a better judgment on the market of Bitcoin. Let the editor of the currency circle talk about it.

 What does the second bottoming out of Bitcoin mean

Around 4:00 am the day before yesterday, Bitcoin once again refreshed the low point of this round of bear market, with the price falling to $17,681 and Ethereum falling to a low of 881. So far, since the historical high, the decline of Bitcoin has widened by 74.48%, and the decline of Ethereum has widened by 81.91%.

Affected by the decline, the contract market's liquidation volume increased again: the total 24-hour liquidation volume of the entire network was US$456 million, of which BTC was US$202 million and ETH was US$127 million. As the cryptocurrency market continues to explore new lows, the discussion on whether the bottom has been formed is particularly active. Many analysts believe that the market has bottomed out based on historical performance, technical performance, miner costs, etc., but the reality is cruel:

First, according to history, MA200 has always been considered the bottom of the bear market, and it has never been completely broken in the history of BTC. However, Bitcoin has already fallen below this indicator, indicating that the technical analysis is no longer tenable.

Secondly, miner costs are also an important sign of the bottom of the market. According to the current mining industry data, based on the current currency price and the US 8 cents electricity fee (RMB 0.55), the high-end S19 (34w/t) electricity fee accounts for 82%, and the mid-to-high-end M30s (40w/t) electricity fee ratio has reached 96%. All mid-range and low-end machines below are no longer enough to pay for electricity. Jiang Zhuoer posted on Weibo that "miners' surrender" is a typical sign of bottoming out in history.

 Where is the bottom of Bitcoin?

We should still return to the root cause of the cryptocurrency market crash. Although the industry crisis has exacerbated the downward trend of the market, the fundamental reason for the decline in the cryptocurrency market is still the changes at the macroeconomic level:

Kunal Goel, a research analyst at Messari, a US blockchain database startup, said that the uncertainty of the global macroeconomics, coupled with the violent turbulence of the crypto ecosystem, has caused the price of cryptocurrencies to fall at a speed that surprised investors.

In the final analysis, the reason for the continued plunge is the monetary tightening policy. The Federal Reserve has been frantically raising interest rates and shrinking its balance sheet to control inflation. Liquidity has been withdrawn, and risky assets are bound to fall.

In particular, the involvement of large institutions has brought greater relevance to the crypto market with the macroeconomy. Moreover, as the market has repeatedly bottomed out, large institutions have been forced to enter the liquidation link due to the break in their capital chain, which has exacerbated the market crisis. Therefore, in the final analysis, where will the cryptocurrency fall this time? History, technology, and miners may not have a say. It depends on the face of the macroeconomy!

Hopefully, investors will be able to understand what Bitcoin’s second bottoming out means through this article. In most cases, you can’t be successful in the investment world without first understanding the basics and even considering trading Bitcoin. Technical analysis can be valuable in any field, even if it does require people to fully believe in these predictions in order for them to become a reality. Here, the editor of the Coin Circle recommends that you don’t start trading Bitcoin without some practice, because there aren’t many free tools that allow people to do this, but you should also learn to use these free tools to assist yourself.

Technical analysis shows that Bitcoin's second bottoming out is often accompanied by an increase in trading volume and a signal that the price has stopped falling. Investors can use indicators such as MACD and RSI to judge the market's buying and selling power and seize trading opportunities. In addition, the compression of the Bollinger Bands and the changes in the K-line pattern are also important bases for judging market trends. When facing Bitcoin's second bottoming out, technical analysis provides investors with an important reference to help them avoid risks and seize opportunities.

In addition to technical analysis, market psychology plays a vital role in Bitcoin's second bottoming out. Investors' panic often reaches its peak when the market bottoms out, leading to extreme price fluctuations. However, as Warren Buffett said, "Be panic when you are greedy, and be greedy when you are panicked." Investors should keep a cool head, not be swayed by market sentiment, and make rational judgments on market trends. When Bitcoin hits its second bottom, an accurate grasp of market sentiment can help investors avoid blindly following the trend and protect their investment capital.