Crypto analyst Crypto Rover has pointed out a trend line that Bitcoin has never surpassed in each market cycle. The leading cryptocurrency has now touched this trend line, leading to optimism that it could rebound from that level as it did in previous years. bear cycles.
Bitcoin touches trend line that has led to parabolic rallies
in a x publicationCrypto Rover revealed that Bitcoin has once again touched the trend line it had never surpassed in 9 years. Instead, BTC has seen parabolic rallies every time it touches this trend line. In 2017, it rallied 1,300% after hitting this trend line; In 2018 it rose 1,900% after touching it; and in 2020 it rose another 1,900% after touching it. Bitcoin experienced another 700% parabolic rally after hitting this trend line in 2022.
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Now, Bitcoin has touched this trend line again, offering optimism that it could bounce off this region as it did in past cycles. However, in another x publicationCrypto Rover suggested that BTC has yet to find a bottom and could still fall below $60,000 before bottoming out. This occurred when the analyst alluded to Realized BTC Price.
He noted that the short-term holders’ (STH) realized price of $74,000 had been reached, but that the realized price of $53,600 and the long term holders (LTH) the realized price of $50,000 has not been reached. Crypto Rover added that every bottom from the previous cycle has traded below realized price and every major flow has kissed the LTH line. As such, BTC is likely to see another move lower before bottoming out.
Bitcoin is also at risk of another drop with the War between the United States and Iran climbing again. The United States carried out strikes against military targets in Iran, leading to retaliatory attacks against American military bases in the Gulf region.
A drop below $50,000 is also a possibility
Cryptographic analyst Alí Martínez has indicated that Bitcoin could still fall below $50,000. This came when he pointed out the price for investors, which he noted is currently $48,300. He said this level is a key area he is keeping an eye on. long term accumulation. The analyst had described this metric as one of the most important BTC on-chain metrics.
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Martínez explained that this metric measures the average acquisition price of all economically circulating Bitcoin, filtering out permanently lost coins to provide a more realistic cost base across the market. However, it is worth noting that the analyst had previously said that there were signs that BTC was about to bottom out in the market. Noted 1.0-0.8 MVRV bandswhich line up at $53,900 and $43,150.
At the time of writing, Bitcoin price is trading at around $62,600, up in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
