Bitcoin Bottom in Sight as Two Analysts See the Same Thing
Charles Edwards sees a possible bottom through stablecoin liquidity, while Root points to support around the 21-week and 200-day moving averages. Bitcoin is still barely holding those levels.
Key Takeaways
- Two independent analysts see signs that the Bitcoin bottom may already be in.
- Charles Edwards points to falling stablecoin liquidity, while Root looks at cycle structure and moving averages.
- Bitcoin stayed around $79,755 above key levels, including the 21-week moving average of $79,355.
Two independent analysts say the Bitcoin bottom is in, and both reach the same conclusion through different paths. Charles Edwards is looking at stablecoin liquidity, while analyst Root is mainly focused on cycle structure and the price setup. Bitcoin was trading around $79,755 (€68,600), just above the level that their analysis says is important for keeping the bottom thesis intact.
Two Signals Point the Same Way
Edwards, founder of Capriole Investments, posted his signal on September 4. His Market Hedge Ratio tracks the relationship between USDT and Bitcoin over a rolling 30-day period. The indicator fell to -20.42% and came close to the -20.78% line on his chart. According to Edwards, a falling ratio suggests capital is shifting out of stablecoins and into Bitcoin.
He did not call it a guarantee of a bull market, but he did say it looks like downside room is limited as long as the ratio does not turn back up. His own time frame is short: he is talking about weeks, not months. Separate from that, Root reached a similar conclusion based on price structure. He is watching for the moment when Bitcoin moves back above the 200-day moving average, the 21-week moving average, and the cost basis of short-term holders.
Why That Level Matters
Bitcoin was 0.23% lower at the time of writing than a day earlier. Even so, the price stayed above all three levels Root uses. The 21-week moving average stood at $79,355 (€68,300), which meant Bitcoin was still only 0.5% above it. Below that are the cost basis of short-term holders at $70,853 (€61,000) and the 200-day moving average at $69,785 (€60,000).
Those two lower levels are close together and form a support zone around $70,000 (€60,200). Grayscale previously put its own bottom estimate in that same area. A weekly close below that zone would put both analyses under pressure at the same time. As long as Bitcoin stays above $79,355 (€68,300), both scenarios remain intact.
Why This Matters for European Readers
For European crypto investors, this is mainly relevant because it shows how differently analysts can read the same market. One looks at stablecoin liquidity, while the other focuses on long-term structure and moving averages that have often mattered in past bear markets. That does not make the signal more certain, but it does make it broader than a single price reaction. Recent selling pressure from whales also fits into this broader picture of a market that is still balancing between support and distribution.
