The crypto strategist who has been closely watching Bitcoin (BTC)’s loss in value has determined whether there is a macro bottom for the leading digital asset. Meanwhile, another analyst examined the current trend of BTC. Here are the details…
Invitation the Wave: July will be green for Bitcoin
Analyst Dave the Wave tells his 117,000 Twitter followers that Bitcoin’s recent correction below $20,000 is a reminder of BTC’s 2018 bear market capitulation. He states that this capitulation is proportional to 2018. Looking at Dave the Wave’s chart, the magnitude of Bitcoin’s sharp pullback from $30,000 to 2022 lows to $17,760 seems comparable to the 2018 sell-off event where king coin dropped from $6,000 to $3,000 and eventually bottomed out. In both cases, BTC lost more than 44 percent of its value.
The crypto strategist also underlines that since 2012, Bitcoin has consistently hit bear market bottoms near the 0.382 percent Fibonacci level. As Cryptokoin.com has previously reported, it correctly predicted important levels in BTC. Dave the Wave correctly guessed that in 2019 Bitcoin would drop to $6,400, rise to $11,000 before returning to $8,000. Also, the analyst correctly predicted that BTC would rise above $11,000 by February 2020.
Dave the Wave says that at its current level, Bitcoin is trading in a prime opportunity zone for long-term bulls based on a logarithmic growth curve (LGC). Noting that BTC will rise in July, he uses the following statements:
The price is deep in the long-term ‘LGC buy zone’ pattern. It’s lower than my medium-term technical target. Traders looking to establish a long position better buy sensibly, based on the LGC model here. The next month for Bitcoin will be green.
Benjamin Cowen points out macroeconomic signal in BTC
Crypto analyst Benjamin Cowen says that what triggers a trend reversal in Bitcoin (BTC) could be a macroeconomic signal. In a recent strategy session, Cowen tells his 754,000 YouTube subscribers that he’s keeping an eye on the US inflation rate and its correlation with stock markets and Bitcoin.
Historically, the S&P 500 index hasn’t bottomed out until inflation peaks and reverses, Cowen says. Because Bitcoin often behaves in an index-like fashion, Cowen says BTC may not bottom out until inflation cools. Based on historical data, the popular crypto analyst says that Bitcoin and the stock market will likely fall further as inflation continues to rise. The analyst says the following:
We also know that inflation hasn’t peaked yet, and it would be somewhat irresponsible to assume it does until it’s actually proven on the charts. I think inflation continues to rise. It will likely continue to rise for a while before we see a more convincing peak. Until then, we shouldn’t assume the S&P 500 bottom is in. Since Bitcoin behaves like a risk asset just like the S&P 500, we must also assume that the macro bottom does not necessarily have to be.”
38240
