You are currently viewing Bitcoin (BTC) Hasn’t Bottomed Yet In This Bear Market Cycle, Here’s Why $20,000 Is Possible

Bitcoin (BTC) Hasn’t Bottomed Yet In This Bear Market Cycle, Here’s Why $20,000 Is Possible

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The world’s largest cryptocurrency Bitcoin (BTC) has been exhibiting risky value swings within the vary of $29,000-$31,500. After yesterday’s value crash, Bitcoin has as soon as once more reclaimed the $30,000 stage. Bitcoin’s value motion has been fairly in step with what’s occurring on Wall Street not too long ago.

Many suppose that Bitcoin (BTC) might need shaped a backside at $29,000, nevertheless, which may not be the case. Historical chart patterns and a easy understanding of shifting averages will assist us perceive that Bitcoin (BTC) hasn’t but bottomed on this bear market cycle.

Popular crypto analyst Rekt Capital shares attention-grabbing insights into this matter. In one in all his current threads, Rekt Capital explains:

BTC tends to verify uptrends when it breaks above the (blue) 50-week EMA. $BTC tends to verify most monetary alternative when it reaches & breaks down from the (black) 200-week EMA. 

The analyst additional explains that the hole between 50 WEMA and 200 WEMA will assist us perceive whether or not if the underside is in. Rekt Capital shares attention-grabbing insights from the previous three bear market cycles. He writes:

  • In 2015, the primary backside was 150% away from the blue 50 WEMA. The remaining backside was ~50% away from the blue 50 WEMA.
  • In 2018, the primary BTC backside was ~100% away from the blue 50-week EMA. The second $BTC backside was 70% away from the blue 50-week EMA.
  • In March 2020, the primary BTC backside was 110% away from the blue 50-week EMA. No second backside shaped. 

Bitcoin $20,000 Is Possible?

Thus, the important thing takeaway from the previous observations is that the primary backside comes at the least 100% away from the 50-week EMA. The second backside, if any, comes as 50-70% from the 50 WEMA. If we go by this development, Bitcoin hasn’t but bottomed on this cycle. Rekt Capital explains:

If BTC repeats a 100% draw back from the 50 WEMA (blue line), it means it’ll contact $20,000 earlier than reversing the development. It means BTC should kind a serious wick beneath the 200 EMA (black line) to kind a serious backside. All credit to Rekt Capital for this glorious analyst.

Previously, the analyst additionally shared one such perception based mostly on the Bitcoin Death Cross to know backside value formations.

Bhushan is a FinTech fanatic and holds an excellent aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired data. In free time he reads thriller fictions novels and typically discover his culinary expertise.

The introduced content material might embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty on your private monetary loss.



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