A widely followed cryptocurrency analyst says that it determines exactly when the Bitcoin (BTC) bear market bottom will occur. According to the analyst, before we make a “bottom call”, we should see a bottom form in the largest cryptocurrency.
Analyst: Bitcoin, the “once in a generation” pattern is yet to come
Many cryptocurrencies thought we had bottomed out, with Bitcoin lurking at its lowest levels in recent years. But some analysts argue that the bottom is yet to come. In a new interview with Real Vision, trader Rekt Capital says we should see a “one-in-generation” bottom form before BTC bottoms out. In such a case, asset prices would drop so drastically that they are unlikely to be that low again. So when it happens “once in a generation”, an intergenerational bottom occurs.
Also, the analyst says we should see a few months of horizontal consolidation. The analyst points to several months of horizontal consolidation as hints of bottoming. He says that this period will be entered after the downtrend accelerates. The analyst uses the following statements:
We still need to see intergenerational bottom form after the downtrend accelerates. We also need to see a period of side consolidation for several months… It’s just that both of these phases can take a long time to complete. Of course the bottom phase, acceleration and downtrend don’t take much time, but it is the consolidation that takes the longest. So, after this bottom, we will see sideways price action for several months until we finally reach the [resistance area] to enter a new macro uptrend.
Analyst draws attention to halving cycle
Rekt Capital says it believes the cryptocurrency bear market floor will form sometime in Q4 of this year due to the halving cycle. As we have also reported as Kriptokoin.com, halving is the halving of the amount of BTC that Bitcoin miners receive per block. The halving takes place every four years. The next halving will be in 2024. Rekt Capital uses the following statements:
The biggest acceleration in price action occurs after the halving. The next halving will take place in April 2024… At least 500 days must pass for this bottom before the halving takes place. If this repeats for this cycle, it means we have to wait until the fourth quarter for the bottom of the bear market to fully form.
The strategist also tells his 320,000 Twitter followers that BTC has “reached historic selling levels.” He states that at some point, this oversold will point to the point of maximum financial opportunity. At the time of writing, Bitcoin is trading at $19,237, down 0.7 percent.
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