Bitcoin (btc) Approaching Level That Historically Acts As Cycle Bottom, Says Top Analyst

A preferred crypto analyst says Bitcoin (BTC) might have to maneuver additional under an necessary shifting common (MA) earlier than hitting its cycle backside.

Pseudonymous dealer Rekt Capital tells his 316,000 Twitter followers Bitcoin crossed its 200-week shifting common for the primary time since March 2020.

Explaining the historic patterns BTC follows after crossing this common, the analyst says,

“BTC tends to draw back wick under this 200-week MA

In actual fact, in March 2020 BTC truly Weekly Candle Closed under the 200-week MA for the primary time ever to carry out a pretend breakdown”

Supply: Rekt Capital / TradingView

Explains the dealer,

“BTC tends to draw back wick -14% to -28% under the 200-week MA. To this point, BTC has depraved -7% under the MA.

BTC could must wick even deeper to encourage the sentiments of utmost concern, uncertainty and most pessimism which can be essential to forming a bear market backside.”

Rekt Capital additionally notes Bitcoin’s Relative Power Index (RSI) is approaching ranges final seen on the bottoms of the 2015 and 2018 bear markets.

Supply: Rekt Capital / TradingView

An asset’s RSI is a momentum indicator measuring latest costs to find out whether or not it’s oversold or overbought in a selected timeframe.

Bitcoin is buying and selling for $22,587 at time of writing. The highest-ranked crypto asset by market cap is up greater than 2% previously 24 hours however stays down greater than 25% on the week.

Examine Value Motion

Do not Miss a Beat – Subscribe to get crypto e mail alerts delivered on to your inbox

Comply with us on Twitter, Facebook and Telegram

Surf The Day by day Hodl Combine

Featured Picture: Shutterstock/AnnstasAg/Chuenmanuse

Leave a Comment

Your email address will not be published.