The Nasdaq, which plunged in value following both the dotcom bubble and financial crisis, more than doubled in value in the following five years of post-bubble recovery. Like the Nasdaq, bitcoin could recover rapidly in the medium-term, analysis suggests.
With the 200-day moving average of bitcoin reversing its trend for the first time in 16 months and various technical indicators demonstrating a positive near-term trend for the asset, many industry executives and investment firms like Pantera Capital believe bitcoin has bottomed out.
Earlier this week, economist and global markets analyst Alex Krüger said that whether bitcoin has reached its bottom at $3,122 or not is not up for debate. Purely based on technical indicators and data, Krüger emphasized that when the bitcoin price crossed $4,200, it broke out of its 16-month bear trend.