Key Takeaways:
- Bitcoin Bottom might be just around the corner, as per analysts.
- Meanwhile, BTC prices try to reclaim $21,000 after moving above $20,000 on Monday.
NEW DELHI (CoinChapter.com) — Bitcoin bottom, which means the lowest price for the crypto before a bullish reversal, might be here, as per an analyst who previously predicted the May 2021 BTC crash.
Pseudonymous analyst ‘Dave the Wave‘ shared on Twitter that Bitcoin prices‘ recent trip below the $20,000 level might be the bottom. The analyst pointed out similarities between Bitcoin’s recent price movement and the token’s price action during the 2018 bear market.
In 2018, the prime crypto plunged nearly 44% from nearly $5,600 to reach a low of around $3,000 before recovering. Moreover, Dave also highlighted BTC bear markets have routinely bottomed out near the 0.382 Fibonacci level (weekly charts).
With Bitcoin bottom almost here, the analyst suggested that current BTC price levels might be a good entry point for long-term investors. Dave also shared Bitcoin’s MACD across the daily, weekly, and monthly time frames.
The crypto trader highlighted that BTC’s MACD, a trend-based momentum oscillator, is nearing levels of previous price lows on the weekly and monthly charts, indicating a bullish reversal based on historic trends.
Also Read: Terra contagion will crash Bitcoin to $10K, Ether to $300 in 2022 — analyst.
The token’s daily MACD is nearing levels where BTC prices bottomed out in 2020.
In addition, a senior analyst at UTXO Management, Dylan LeClair also shared Dave’s view that the Bitcoin bottom is close.
LeClair highlighted that the derivatives market shorting BTC is an indicator that the Bitcoin bottom might be around the corner.
Meanwhile, BTC jumped nearly 22% since Jun 18 to reclaim the $20,000 level, with bottom wicks on BTC’s daily candles indicating strong buying action near the lower price levels.
Bitcoin RSI Returns To Neutral Regions
As a result of BTC prices’ recent uptrend, Bitcoin’s relative strength index became neutral, clocking at 32.47, after being oversold for nearly 8 days. The RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions.
Furthermore, the rising RSI trendline indicates selling pressure is declining for BTC. An oversold RSI often preludes a trend reversal for crypto prices. Meanwhile, the momentum oscillator MACD forecasted a strengthening upwards momentum for BTC prices.
Negative bars on the MACD histogram are contracting, which means the MACD line (difference of 12-day and 26-day EMA) is moving towards the MACD signal line (9-day EMA of MACD). Once the MACD line moves above its signal line, it will form a bullish crossover, another buy signal for traders.
The two technical indicators might help Bitcoin prices start an uptrend, proving analysts’ Bitcoin bottom predictions. Bulls would hope to claim $21,000 after BTC jumped 5.6% from Jun 21’s low of $20,332 to reach an intraday high near $21,500.
Also Read: Bitcoin (BTC) investors suffer $7.3B losses in just three days — BTC reclaims $20K.
If the current buying action continues, BTC prices might move above immediate resistance near $22,400 after consolidating at $21,000. Conquering immediate resistance might give Bitcoin the momentum to challenge resistance from its 20-day exponential moving average (20-day EMA, red wave) near $24,500.
Finally, a sustained uptrend could see BTC prices jump more than 30% to target resistance near $27,700.
Conversely, failure to start an uptrend might force Bitcoin prices to test support near $20,300. If the immediate support fails, BTC prices might fall to support near $18,500. Additionally, a marketwide sell-off might see Bitcoin fall 22.5% to reach $16,500 before recovering.
At writing, BTC was trading at $21,219, up 3.14% on the day.
