Good News For Bitcoin
McGlone took to Twitter to share his forecast for the leading cryptocurrency in the market. Panic had washed through investors when the digital asset had declined to the $20,000 level, tethering just slightly above it. While many believe that this was a signal for a further downtrend to come, some have said that it may have marked the bottom for the asset.Related Reading | Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story
What this implies is that the bottom of the current downtrend may be in. Looking at the previous bear market, it is obvious that the bottom was clocked right when the price had fallen below $6,000 in the early days of 2022. If so, then there is no further decline for the digital asset from this point.$20,000 May be the New $5,000 –
— Mike McGlone (@mikemcglone11)
The fundamental case of early days for global Bitcoin adoption vs. diminishing supply may prevail as the price approaches typically too-cold levels. It makes sense that one of the best-performing assets in history would decline in 1H…
BTC resumes downtrend | Source:
But Is The Bottom In?
Just as one historical movement can tell one story of the bitcoin bottom, so do the others. Now, it is known that the last bear market saw the price of bitcoin declined more than 80% from its all-time high. This trend has been closely followed through the bear markets. Despite the brutal crash in the last couple of days, bitcoin is still less than 70% down from its November all-time high. Given this, there may be more decline to come if it was to follow this trend.Related Reading | Bitcoin Bounces Back Before Hitting 2017 Peak, Is The Bottom In?
One thing to note though is that the present market has been deviating from previously established trends. It had begun with the multiple bull rallies of 2021 and now has carried into the bearish market of 2022. So, maybe there will be more breaking of historical trends to come.
Featured image from Cryptoknowmics, chart from TradingView.com
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