A well-liked crypto strategist is taking a look at one key metric to find out whether or not or not Bitcoin (BTC) has lastly reached the underside throughout the present prolonged bear market.
The pseudonymous dealer Rekt Capital offers his 312,800 Twitter followers a prolonged thread about how Bitcoin’s worth is affected by its exponential shifting common (EMA), a calculation the place the latest knowledge factors have better weight and significance.
“BTC tends to substantiate uptrends when it breaks above the blue 50-week EMA.
BTC tends to substantiate most monetary alternative when it reaches and breaks down from the black 200-week EMA.
Is the BTC backside in already or is there extra draw back to come back?”
The chart guru references a number of previous worth strikes of significance in 2015, 2018 and 2020 earlier than explaining that BTC seemingly has not reached a cycle backside as a result of its worth stays 66% off from the 50-week EMA (WEMA).
“Key takeaway is that the primary BTC backside tends to type not less than ~100% away from the blue 50-week EMA.
And the second BTC backside tends to type ~50-70% away from the 50 WEMA.
If this continues to be true then BTC hasn’t but bottomed on this cycle… as a result of the present native BTC backside is 66% away from the blue 50-week EMA.
Usually the primary BTC backside is ~100% away and the second backside 50-70% away from the 50 WEMA. This present state of affairs resembles ‘second backside habits greater than ‘first backside’ worth motion.”
Rekt Capital concludes his evaluation by focusing on roughly $20,000 as the extent buyers ought to count on Bitcoin to fall to earlier than having touched a cycle backside.
“Ought to BTC as soon as once more repeat a 100% separation from the blue 50-week EMA…
Then that would counsel a BTC backside near the ~$20,000 space.
This is able to fulfill the overall tendency of earlier BTC all-time highs not being revisited throughout corrective intervals.”
At time of writing, Bitcoin continues to witness uneven worth motion across the $30,000 stage.
BTC is presently down 3.07% over the previous 24 hours and buying and selling for $30,252.
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