Two analysts, who had previously been on the agenda with accurately predicting various levels in the Bitcoin (BTC) price, shared their analysis of the current situation. Meanwhile, Bitcoin is changing hands at around $21,000. Here are the details…
Smart Contracter: Bitcoin and Ethereum are very close to the critical moment
Crypto strategist who accurately knew the bottom level during the 2018 bear market, as we have previously reported as Kriptokoin.com, Bitcoin (BTC) ) and Ethereum (ETH) are close to recording the lows of this cycle, he says. Analyst Smart Contracter tells his 208,000 Twitter followers that both BTC and ETH are going through a phase of capitulation. He said that at the moment the market is trading in a price area that he says both offer strong support, adding the following statements:
BTC and ETH at their 200-week moving averages. Bottom I think is very, very close, maybe new lows are seen on lower timeframes. But I think this is the point to start saving. This is pure capitulation.
According to Smart Contracter, the 200-week moving average has marked bear market lows for Bitcoin over the past eight years. According to the analyst, BTC has bottomed 4x in its 200-week moving average dating back to 2014. “It is probably safe to assume that this is a pretty strong level,” the analyst says. “Of course we can get under that, but we still have six more days to go into the week,” he adds.
Will Bitcoin survive the drop?
Smart Contracter also points out that cryptocurrencies have already destroyed trillions of dollars in market capitalization this cycle. He says he doesn’t believe Bitcoin will survive another 80 percent drop in the 2014 and 2018 bear markets, using the following expressions:
Personally, the higher each cycle, the higher the [market’s] of each month. I feel that the percentage of falling from the ] peak will be that much less. The amount of dollars deleted already far exceeds 2018.
Rager reveals potential bottom for BTC
Another closely followed crypto strategist shares two potential bottom targets for Bitcoin as BTC has lost around 30 percent of its value in just seven days. Crypto analyst Josh Rager tells his 207,100 Twitter followers that he closely followed the 200-week simple moving average (SMA), which he says marked the bottom for Bitcoin during the 2015 and 2018 bear markets and the 2020 Covid-induced crash. On top of that, he says, “There is a good possibility that $22,300, where the moving average is now, is a real possibility for us to see a potential bottom.”
While BTC is currently below the 200-week SMA, Rager highlights that the bearish move could be a bought wick. While the 200-week SMA has historically allowed Bitcoin to tread at bear market lows, Rager says BTC could still drop when looking at the percentage retracement from its all-time high:
2013′ If you look at from 2015 to 2015, we saw an 80 percent drop in prices there. The last all-time high [$20,000], you saw a pullback of 83.84 percent from December 2017 to November 2018… So basically, historically over 80 percent from the all-time high during market cycles We had a retreat. Now the problem with that is that from its all-time high of $69,000, Bitcoin’s previous wick has only gone as far as 63 percent. Even if we dig down to the 200-week simple moving average, that’s just 67.68 percent below the record level.
Will $14,000 be seen in BTC price?
According to Rager, whose previous predictions can be seen here, an 80 percent drop from BTC’s all-time high will bring Bitcoin down to the $14,000 price level. He highlights that the price area offers solid support for BTC from a higher timeframe perspective. Rager uses the following expressions:
The block zone here has dropped from roughly $17,000 to $14,000. You will also notice that this is the area where the price rejected during the 2019 uptrend after the bottom and before the black swan event. Then it rose again, had some trouble. Finally it went up, went down again and retested the level; rose again. So if it drops below the 200-week SMA, I think this is a good place to buy.
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