Bitcoin bear market is almost over says Plan B
- Bitcoin price witnessed an 8-week decline for the first time in its history.
- Leading on-chain analyst Plan B has noted key indicators that point towards the end of the current bear market.
- Analysts have identified a short-term triangle formation in Bitcoin that could trigger a bullish breakout over the weekend.
Bitcoin price suffered a massive decline in the recent bloodbath. While most analysts predicted further decline in Bitcoin price, there is a chart pattern that implies a bullish breakout.
Plan B predicts recovery in Bitcoin
In the recent Bitcoin bloodbath, BTC price plummeted below $30,000, a key psychological barrier for the asset. With Bitcoin’s consistent decline, proponents have noted that the current 8-week fall is the first of its kind in the asset’s history.
Plan B noted key indicators that imply a bullish turnaround in Bitcoin price. The Relative Strength Index (RSI) is an oscillator that provides information about an asset being overbought or oversold.
Plan B notes that RSI currently indicates that the bear market is almost over and Realized Price/Moving Average (RPMA) and the Relative Strength Index are ready to start rising again.
Realized Price / Moving Average (RPMA, purple) shows the #bitcoin cycle best. Relative Strength Index (RSI, yellow) is similar, but can be misleading at critical times (e.g. 2nd half 2021). The good news: bear market is almost over. Waiting for RPMA and RSI to start rising again. pic.twitter.com/Naz2zPV071
— PlanB (@100trillionUSD) May 20, 2022
While legendary investor Peter Brandt predicted a colossal 90% drop in Bitcoin and altcoin prices, Plan B argues a trend reversal in BTC is likely.
Bitcoin is ready to wipe out its losses following an 8-week losing streak. Bob Loukas, trader and entrepreneur believes Bitcoin is primed to recover. The analyst is confident that Bitcoin price will not lose its $28,500, lower support despite retest.
If Bitcoin price trades above $31,500, Loukas believes it would quickly rally to $37,000.
$BTC is now in a new cycle. Retested lower support and now needs to find the bid. Cannot lose $28.5k this early in a cycle because it's lights out if it does.
— Bob Loukas (@BobLoukas) May 20, 2022
Trade above $31.5k it's a quick move to $37k pic.twitter.com/3huo5zkD8U
While Bitcoin holders anticipate the asset’s next move, analysts have identified a short-term triangle formation in the BTC price chart. The triangle chart pattern would play out over the weekend, and leading technical analyst Yaz Sheikh believes buyers could defend June 2021 lows and push the asset above $30,000.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
