- Bitcoin price has dipped to its lowest level since July 2021 amidst the bloodbath in cryptocurrencies.
- Whale transactions in Bitcoin and Ethereum have hit multi-year highs, implying a “bottoming out” of BTC and ETH.
- A leading technical analyst believes Bitcoin has bottomed out and remains bullish at the current price level.
Bitcoin price may have reached a bottom, according to leading crypto analysts after the asset plummeted to a new low of $28,461. Analysts remain stubbornly bullish on Bitcoin price recovering despite fears of mass capitulation.
Bitcoin price has bottomed, say these analysts
Bitcoin price recently nosedived and hit $28,461, its lowest level since July 2021. This happened as the cryptocurrency ecosystem was hit by a massive bloodbath that has wiped out $310 billion in market capitalization over the past week.
Proponents have identified three key reasons for the Bitcoin price drop and bearish sentiment among crypto investors. The first, is the depegging and crash of stablecoins like Terra USD(UST), USD Tether (USDT), DAI and Binance USD (BUSD) has fueled a negative sentiment among crypto investors.
The second, is that amidst fears of rising inflation and the monetary policy tightening of the Federal Reserve, investors are pulling capital out of cryptocurrencies. A further factor is Bitcoin’s high correlation with stocks and S&P 500 which have also experienced a price drop.
@TheRealPlanC, a leading on-chain analyst, has evaluated the Bitcoin price trend and proposed the “Confluence Floor Model.” The floor price of the model is $27,688.
@TheRealPlanC’s model was first published on March 8, 2022. The model attempts to present the worst-case scenario for Bitcoin price. The analyst takes three independent floor models into account and presents an accurate historical analysis. Bitcoin price has touched the model’s chart a mere three times throughout history.
So everyone understand how the model works. #Bitcoin— Plan©️ (@TheRealPlanC) May 12, 2022
In order for it to break the price would have to have a daily close below the floor model. #Crypto
This has never happened in the history of #BTC, if it does than the model is no longer useful, very simple. https://t.co/xMfmbJ6u8e
These three instances are considered “best buy” scenarios for Bitcoin. A daily close below the floor of $27,688 would invalidate the model. The analyst has therefore called the Bitcoin bottom at the current price level.
@decodejar, an onchain analyst and trader, believes that BTC's wave four is potentially complete based on the Bitcoin Elliott Wave Theory. The theory consists of five price swings derived from technical analysis. Waves one, three and five are upward swings and wave two and four are pullbacks.
The completion of wave four is confirmed since the parallel channel holds. The high in wave five, or Bitcoin price after recovery, is expected to exceed $44,000, based on the analyst’s chart.
Experts that argue Bitcoin has bottomed out are, therefore, bullish on a complete recovery in the asset’s price.
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