- Bitcoin price likely hit its absolute bottom according to the Market Mastery Divergence indicator.
- Analysts believe it is the best buying opportunity for traders in years, according to the indicator that worked in three previous cycles.
- Bitcoin price could face resistance at the $22,000 level according to analysts.
Bitcoin analysts believe that the bottom is in and the asset is ready to break out of its downtrend. Based on the Bitcoin price trend in previous cycles, the asset is currently at its bottom.
Also read: Bitcoin whale MicroStrategy reveals plan to scoop up $500 million in BTC
Bitcoin price hit bottom; analysts predict recovery
Benjamin Cowen, a leading crypto analyst, closely evaluated the Bitcoin price chart and observed that BTC had hit its cycle bottom. In a recent interview, Cowen pulled out a key metric, Bitcoin’s supply in the profit and loss chart.
The analyst was quoted as saying,
Some of the charts that I think are the most interesting are things like the supply in profit and loss. One of the interesting things about this chart is that historically, Bitcoin does not bottom until after they cross. Until after they cross.
For the first time in the current Bitcoin cycle, the supply in profit and the supply in loss crossed. This indicates that the Bitcoin bottom is in. The Bitcoin bottom typically occurs after the cross, therefore there is evidence that the current price level is a significant bottom for BTC.
Bitcoin percentage of supply in profit and loss
Analysts identified another key indicator, Market Mastery Divergence. When the line in the indicator turns red, it reveals a buying opportunity for traders. El Crypto Prof, a pseudonymous crypto analyst, considers this the best buying opportunity for traders.
While Bitcoin trades close to its bottom in the current cycle at the $21,641 level, it is an opportunity for traders to accumulate the asset for profit in the long term. Therefore, this is likely the Bitcoin bottom traders have awaited in the current cycle. The Bitcoin bottom is key to traders since accumulating at this level ensures a profitable yield for the rest of the cycle.
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