Binance Research: The Crypto Market Has Likely Already Bottomed

Marco Verch / Flickr

Binance, the world’s largest crypto exchange, recently published a report through its research department that claims that the cryptocurrency market has more than likely already bottomed.

In the report titled “Investigating Cryptoasset Cycles,” Binance used a cross-sectional method to find correlations throughout the crypto market, as part of an effort to find patterns in crypto market cycles.

Binance discovered a number of cyclical patterns, showing that a strong correlation between altcoins and Bitcoin (BTC) over an extended period of time historically results in a price trend reversal. Notably, the composite altcoin correlation with Bitcoin hit an all-time high on March 13, 2018, which coincided with Bitcoin’s fall from $6,000 to the $3,000 range.

Cyclical correlation between Bitcoin and altcoins (Binance Research / CMC)

“High correlation suggests that market sentiment has already found a local maximum during that period, and a trend reversal may possibly ensue,” Binance Research said in the report. “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.”

While Binance Research notes the crypto market is relatively young to be making broader conclusions, the report had the following key takeaways:

Binance Research

Following Bitcoin’s April surge, the total crypto market cap has moved above its 200-day moving average.

Additionally, over the past month, the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies, is up over 31%.

More: Binance Research Investigates Cryptoasset Cycles, Crypto Market‚Äôs ‚ÄúBottom‚ÄĚ
In-Depth: Index Technicals Shed a Light on the Recent Crypto Market Price Action
Image: Marco Verch / Flickr

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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