According to CryptoQuant Analysts, Bitcoin Hasn’t Yet Reached the Bottom: “These Levels Are Crucial for BTC!” Does the Same Signal Are Needed Again for…
Bitcoin and cryptocurrencies have risen in the last 24 hours as hopes for a US-Iran deal increase. However, this rise does not signal a bottom for $BTC.
According to CryptoQuant analysts, the data indicates that the bear market in Bitcoin is not yet over. According to CryptoQuant analyst Gaah, the cycle momentum indicators in Bitcoin have failed to return to the neutral zone. Therefore, any signal of a trend reversal in $BTC has not been confirmed.
“The Bitcoin Cycle Momentum chart shows that the bear market is not over yet.”
The Bitcoin Cycle Momentum indicator did not rise above the neutral zone (0), therefore the bear market is still ongoing.”
The analyst noted that the indicator has currently fallen to “-30 points”. While this is historically a deep zone for a cyclical bottom formation, according to the analyst, the fact that the indicator has entered a deep bottom zone does not immediately confirm a trend reversal.
The analyst stated that a reversal could only be confirmed if the Bitcoin price forms a bullish pattern and the cycle momentum indicator rises above the neutral zone.
Burak Kesmeci, another CryptoQuant analyst, argues that Bitcoin needs to reach and surpass $72,100 to begin its upward trend.
“The $72,100 level is currently acting as a strong resistance line. Until this price level is breached, selling pressure from new large investors in a loss-making position could negatively impact the market.”
According to the analyst, the average purchase price for new large investors who have held Bitcoin for less than 155 days is around $72,100.
In addition, the analyst states that the $58,700 to $53,700 range is an important support range for Bitcoin, arguing that as long as this range is maintained, the long-term bullish pattern will be preserved.
However, if these support levels are broken, $BTC risks falling to around $47,400, which is the average cost for large long-term investors.
Finally, according to the analyses, major dips in Bitcoin have historically followed unexpected events (black swan events).
Recent analyses suggest that major dips in the Bitcoin cycle have historically followed significant unexpected events.
Accordingly, market analysts note that the 2014 Mt. Gox bankruptcy, the 2020 COVID-19 pandemic, and the 2022 FTX crash all coincided with the formation of the bottoms of the $BTC cycle.
According to analysts, as a result, the market is now watching to see if another significant macroeconomic or sector-level catalyst will be needed to kick off a new bull cycle following the recent decline.
*This is not investment advice.
