With Bitcoin (BTC) recording a bearish streak along with the rest of the cryptocurrency market that has just lost $165 billion from its market capitalization in the last week, traders and investors are looking at the flagship digital currency’s potential bottom.
Bitcoin could reach its bottom by the end of 2022, considering its previous movements in the specific period before previous halvings – events after which the reward for mining a crypto block is halved, according to prominent crypto trading expert Rekt Capital.
Analyzing Bitcoin’s bottoming in the past, the expert concluded in his tweet on September 19 that it might bottom 517-547 days before its upcoming halving in April 2024, which means that the bottom could happen in the fourth quarter of 2022. As he explained:
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Weak support at $20k
At the same time, Rekt Capital noted in his blog the $20,000 – $23,350 range and that “the $20k support is showcasing weakness.”
As per the market expert, “the rebound from the $20K support this month has been so weak that it actually looks like the upside wick reaching into the range is price’s way of suggesting that $20K may be flipping into a resistance.”
As he explained:
“Much can still change throughout the month, of course, but at the moment, the price action is telling a story which suggests that $20K may be flipping into new resistance on the Monthly timeframe, setting up for a confirmed breakdown from the range.”
The analyst also added that “in the instance that $20K indeed sees downside continuation from the $20K support, the next immediate supports are $17,165 and ~$13,900.”
So where is the bottom?
Furthermore, Rekt Capital stated that his Historical Death Cross analysis suggests that Bitcoin will form a bottom within the area between $16,985 and $23,467, as its price is flipping the 200-week moving average (MA) into new resistance.
In the most extreme scenario for downside, he states, the price could go “as low as $11,500, which would imply tremendous downside wicking below the $13,900 monthly support.”
Elsewhere, the Bitcoin rainbow chart indicates $16,700 as the potential bottom for the maiden cryptocurrency in the short term.
Meanwhile, Bitcoin is at press time trading at $19,229, which represents a 3.34% decline on the day, as well as a 14.18% drop across the previous seven days.
The market capitalization of the largest cryptocurrency by this indicator currently stands at $366.24 billion, according to CoinMarketCap data.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
