After weeks of terrible price action, the bottom might finally be in.

After reaching a high of just under $20k on December 16th, bitcoin had been making lower lows just about ever since.

This culminated this morning with a washout, extending all the way down into the $5,000's (about $5,900 to be exact), before prices ultimately snapped back.

"Just what I needed!"

This is exactly the kind of price reaction off the lows I have been waiting for.

If you look at the trading history on bitcoin, you will often find that when prices make a bottom, they tend to rebound aggressively.

If prices don't rebound aggressively, that's probably not the bottom yet.

We hadn't really seen that type of price action on either of the previous support zones above.

Prices bounced slightly off $9k, and then mostly just knifed through all the supports all the way down to the levels reached this morning.

The fact that there were no bounces were the main reasons I thought prices had further to fall.

However, taking a quick check on markets, we can see that prices are currently trading at $7,700.

Which is about $1,800 off the lows, or about a 33% bounce.

That is exactly the kind of bounce and price action we have seen in the past when bitcoin puts in a bottom.

For that reason I am expecting prices to trend upwards from here.

Where they ultimately go I am not sure, but I would venture to say that a near term bottom has likely been put in early this morning.

Here's to better times ahead for all those holding through this most recent gut wrenching drop!

Stay informed my friends.

Follow me: @jrcornel