Sign Up on MEXCBitcoin (BTC) Hasn’t Bottomed Yet In This Bear Market Cycle, Here’s Why $20,000 Is Possible
The world’s largest cryptocurrency Bitcoin (BTC) has been showing volatile price swings in the range of $29,000-$31,500. After yesterday’s price crash, Bitcoin has once again reclaimed the $30,000 level. Bitcoin’s price action has been quite in line with what’s happening on Wall Street recently.
Many think that Bitcoin (BTC) might have formed a bottom at $29,000, however, that might not be the case. Historical chart patterns and a simple understanding of moving averages will help us understand that Bitcoin (BTC) hasn’t yet bottomed in this bear market cycle.
Popular crypto analyst Rekt Capital shares interesting insights into this matter. In one of his recent threads, Rekt Capital explains:
BTC tends to confirm uptrends when it breaks above the (blue) 50-week EMA. $BTC tends to confirm maximum financial opportunity when it reaches & breaks down from the (black) 200-week EMA.
The analyst further explains that the gap between 50 WEMA and 200 WEMA will help us understand whether if the bottom is in. Rekt Capital shares interesting insights from the past three bear market cycles. He writes:
- In 2015, the first bottom was 150% away from the blue 50 WEMA. The final bottom was ~50% away from the blue 50 WEMA.
- In 2018, the first BTC bottom was ~100% away from the blue 50-week EMA. The second $BTC bottom was 70% away from the blue 50-week EMA.
- In March 2020, the first BTC bottom was 110% away from the blue 50-week EMA. No second bottom formed.
Bitcoin $20,000 Is Possible?
Thus, the key takeaway from the past observations is that the first bottom comes at least 100% away from the 50-week EMA. The second bottom, if any, comes as 50-70% from the 50 WEMA. If we go by this trend, Bitcoin hasn’t yet bottomed in this cycle. Rekt Capital explains:
5.
Because the current local #BTC bottom is 66% away from the blue 50-week EMA
Typically the first $BTC bottom is ~100% away and the second bottom 50-70% away from the 50 WEMA
So this current situation resembles "second bottom" behaviour more than "first bottom" price action pic.twitter.com/bSjPHlORa4
— Rekt Capital (@rektcapital) June 7, 2022
If BTC repeats a 100% downside from the 50 WEMA (blue line), it means it will touch $20,000 before reversing the trend. It means BTC will have to form a major wick under the 200 EMA (black line) to form a major bottom. All credits to Rekt Capital for this wonderful analyst.
Previously, the analyst also shared one such insight based on the Bitcoin Death Cross to understand bottom price formations.
- Grayscale’s XRP, SOL, ADA Fund To Begin Trading Tomorrow Following SEC’s Greenlight
- Donald Trump Petitions Supreme Court To Remove Fed Governor Lisa Cook
- Pi Coin Rises As Pi Network Implements Protocol v23 on Testnet
- Tether-Backed Plasma Stablecoin Blockchain Set to Launch on September 25
- Cathie Wood’s Ark Invest Backs Nasdaq-Listed Solmate To Launch $300M Solana Treasury
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
- Pepe Coin Price Prediction as Whale Moves $25M From Robinhood- Is a Breakout to $0.00002 Next?
- XRP Price Prediction as Market Longs Hit 78% amid VivoPower Treasury Expansion Launch — Is $4 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
