Renowned Analysts Suggest Bitcoin Has Hit Bottom
Bitcoin price may have bottomed, according to leading crypto analysts after the asset dropped to a fresh low at $28,461. Analysts remain stubbornly optimistic that Bitcoin price will recover despite fears of a massive sellout.
- The price of bitcoin has fallen to its lowest level since July 2021 amid the cryptocurrency bloodbath.
- Whale trades in Bitcoin and Ethereum hit multi-year highs, implying a BTC and ETH “trough”.
- A leading technical analyst believes that Bitcoin has bottomed out and remains bullish at the current price level.
Bitcoin price has bottomed out, these analysts say
The price of Bitcoin recently plunged to $28,461, its lowest level since July 2021. This came as the cryptocurrency ecosystem was hit by a massive bloodbath that wiped out $310 billion worth of Bitcoin. market capitalization over the past week.
Proponents have identified three main reasons for the falling Bitcoin price and bearish sentiment among crypto investors. The first is that the “depegging” and crash of stablecoins like Terra USD (UST), USD Tether (USDT), DAI, and Binance USD (BUSD) has fueled negative sentiment among crypto investors.
The second is that amid fears of rising inflation and tightening monetary policy from the Federal Reserve, investors are pulling capital out of cryptocurrencies. Another factor is the strong correlation of Bitcoin with stocks and the S&P500which also experienced a price drop.
@TheRealPlanC, a leading on-chain analyst, assessed the Bitcoin price trend and came up with the “Confluence Floor Model”. The floor price of the model is $27,688 USD.
The model from @TheRealPlanC was first published on March 8, 2022. The model attempts to present a worst-case scenario for the price of Bitcoin. The analyst takes into account three independent floor models and presents an accurate historical analysis. Bitcoin price has only touched the pattern chart three times in history.
These three cases are considered “best buy” scenarios for Bitcoin. A daily close below the $27.688 floor would invalidate the pattern. The analyst therefore called the bottom of Bitcoin at the current price level.
@decodejar, analyst and trader, believes that BTC’s fourth wave is potentially complete based on Elliott’s theory. The theory consists of five price fluctuations derived from technical analysis. Waves one, three and five are up swings and waves two and four are pull backs.
Completion of wave four is confirmed as the parallel channel holds. The top of wave five, or post-recovery Bitcoin price, is expected to top $44,000 USD, according to the analyst’s chart.
Experts who argue that Bitcoin has bottomed out are therefore optimistic about a full recovery in the price of the asset.
By Ekta Mourya, FXStreet
Ekta Mourya is currently pursuing his MBA in Finance. She has been working in the cryptocurrency space since 2017. She has held positions in the marketing team of major Indian cryptocurrency exchanges Koinex and CoinDCX. She is interested in day trading and the derivatives market.
The opinions expressed here are solely those of the author and do not necessarily reflect the views of Forex Quebec. Every investment and trading move involves risk, you should do your own research when making a decision.
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