Bitcoin opponents are alert, waiting for its death, but some indicators suggest that BTC price might have hit the bottom and a bull run is about to start. This might be the perfect buying point.
Bitcoin Critics Call for Its Demise, But Predictions are Likely to be Incorrect
Like a moving clock, the ongoing crypto bear market has made crypto critics predict a bitter end of the largest crypto by market capitalization. Peter Schiff, a harsh critique of Bitcoin, had to say this on Twitter:
“If #Bitcoin can collapse by 70% from $69,000 to under $21,000, it can just as easily fall another 70% down to $6,000. Given the excessive leverage in #crypto, imagine the forced sales that would take place during a sell-off of this magnitude. $3,000 is a more likely price target.”
The last few months have indeed been very painful for investors as the price of BTC dropped to the lowest point, USD17.6K, since 2019. However, the recent calls for the asset’s death are likely to remain just that: wishful anticipation. Bitcoin has seen about 452 demise calls, but they never came to fruition, and the current arguments about its collapse are also likely to fall into the same groove.
Determined Bitcoiners have a full list of on-chain metrics and tricks they employ to know when the price of the largest coin is about to change. So, what do these time-tested metrics have to say about the current price of Bitcoin? Was the 2021 bull run the last for Bitcoin?
The 200-Week Moving Average
The 200-week moving average has traditionally been used by traders as an excellent level for BTC. According to this metric, the lows that were produced by the 200-MA in previous bear markets served as crucial support levels. BTC price moves slightly below the 200-MA and then starts an uptrend.
Currently, BTC is at its 200-week MA. following the brief drop below the metric on the 14th of June. Although a move below the point is possible, history suggests that this will not be for long before we get an uptrend.
Multiyear Price Support
Together with the support from 200-week M.A., there are a number of notable price levels from the past price performance of BTC that should serve as support in the event that the bear trend continues. The last time when the price of BTC was trading below USD24,000 was in December 2020, when the support was USD24,900. This support was used to trigger a bull run to the USD41,000 level. In the event the support at USD20,000 fails to hold, the one at USD19,900 and USD16,500 should work.
While it is true that BTC can see a possible further price drop, it also suggests that the worst has already happened. Therefore, the current extreme lows are not likely to persist for long. If you have been thinking of buying Bitcoins, whether targeting long-term or short-term returns, this is the time to start searching for trend change signals.
The views and opinions expressed in this post are solely those of the author and do not necessarily reflect the views of hi.com. Every investment and trading decision should be comprehensively researched.