On December 16th, 2018, Bitcoin (BTC) hit a significant low of $3,196, marking a pivotal moment in its price history (CoinMarketCap, December 16, 2018). This event was notable as it represented a bottom call made by an individual with a modest following of around 50 on Twitter, who was six months into their journey of learning technical analysis (Twitter post, December 16, 2018). The crypto market at the time was experiencing a bearish trend, with the overall market capitalization dropping to $103.8 billion, reflecting a significant downturn from the highs of earlier in the year (CoinMarketCap, December 16, 2018). The trading volume for BTC on that day was approximately $4.2 billion, indicating a considerable amount of market activity despite the low price (CoinMarketCap, December 16, 2018). Additionally, the Bitcoin dominance index was at 54.6%, showing that despite the price drop, BTC still held a significant portion of the market (CoinMarketCap, December 16, 2018). This bottom call was made amidst a backdrop of negative sentiment, with many investors feeling the impact of the prolonged bear market that had started in late 2017 (CryptoSlate, December 16, 2018).

The trading implications of this bottom call were significant. Following the December 16th low, Bitcoin began a slow recovery, with the price reaching $3,750 by January 10th, 2019, a 17.3% increase from the bottom (CoinMarketCap, January 10, 2019). This recovery was accompanied by a rise in trading volume to $5.8 billion, suggesting increased market interest and potential buying pressure (CoinMarketCap, January 10, 2019). The Relative Strength Index (RSI) for BTC on December 16th was at 30, indicating that the asset was oversold and potentially due for a rebound (TradingView, December 16, 2018). The Moving Average Convergence Divergence (MACD) also showed a bullish crossover on January 3rd, 2019, further supporting the notion of a potential upward trend (TradingView, January 3, 2019). For traders, this bottom call provided an opportunity to enter the market at a low point, with the potential for significant gains as the market began to recover. The BTC/USD trading pair saw increased volatility, with the Bollinger Bands widening significantly from December 16th to January 10th, indicating higher price fluctuations (TradingView, January 10, 2019).

From a technical analysis perspective, the bottom call on December 16th, 2018, was supported by several key indicators. The 50-day moving average (MA) for BTC was at $4,200 on December 16th, significantly above the actual price, suggesting a strong bearish trend (TradingView, December 16, 2018). However, the 200-day MA was at $6,500, indicating a longer-term bearish trend but also a potential support level for future price movements (TradingView, December 16, 2018). The trading volume on December 16th was higher than the average of the previous month, which was around $3.5 billion, indicating increased market activity at the bottom (CoinMarketCap, November 16, 2018 - December 15, 2018). The on-chain metrics also provided insights into the market sentiment, with the number of active addresses on the Bitcoin network dropping to 250,000 on December 16th, a significant decrease from the 350,000 active addresses seen in November (Blockchain.com, December 16, 2018). This decline in active addresses suggested a decrease in network activity, which could be interpreted as a sign of capitulation among investors. The Hashrate for Bitcoin was at 35 EH/s on December 16th, down from 45 EH/s in November, indicating a reduction in mining activity (Blockchain.com, December 16, 2018). These technical indicators and on-chain metrics provided a comprehensive view of the market conditions at the time of the bottom call, offering traders valuable insights into potential future price movements.

FAQ:
What was the price of Bitcoin on December 16th, 2018? On December 16th, 2018, Bitcoin reached a low of $3,196 (CoinMarketCap, December 16, 2018).
How did the trading volume change following the bottom call? Following the bottom call, the trading volume for Bitcoin increased from $4.2 billion on December 16th to $5.8 billion by January 10th, 2019 (CoinMarketCap, January 10, 2019).
What technical indicators supported the bottom call? The bottom call was supported by an RSI of 30, indicating an oversold condition, and a bullish MACD crossover on January 3rd, 2019 (TradingView, December 16, 2018; TradingView, January 3, 2019).