A historically accurate contrarian indicator suggests that Bitcoin (CRYPTO: $BTC) is near a bottom and that its price is not likely to fall much further.
The indicator is based on Bitcoin's 50-week simple moving average (SMA) and its 100-week average.
The 50-week average is close to dropping below the 100-week line and forming what analysts call a "bear cross."
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The bear cross, which could form later this week, has marked a bottom in past selloffs of Bitcoin.
There have been three previous bear crosses in Bitcoin's history, and each marked a bottom for the largest cryptocurrency by market capitalization.
Some analysts say that an impending bear cross indicates that a decline in Bitcoin that has been ongoing since last October has nearly run its course and a bottom is near.
Several analysts and crypto bulls have said that BTC likely bottomed when its price briefly dipped below $60,000 U.S. earlier in June.
Critics and skeptics argue that the three past instances of a bear cross aren't enough to draw a definite conclusion. However, each previous bear cross led to a bottom forming in Bitcoin.
BTC is currently trading at $62,280 U.S. Bitcoin has largely been rangebound and trading between $60,000 U.S. and $65,000 U.S. in June of this year.