A closely followed crypto strategist has announced two potential bottom targets for Bitcoin, with BTC losing nearly 30% of its value in just seven days.
Crypto analyst Rager told his 207,100 Twitter followers that he closely followed the 200-week simple moving average (SMA), which he said marked the bottom for Bitcoin during the 2015 and 2018 bear markets and the 2019 Covid-induced crash. stated.
“Simple moving average, this blue one, is indeed the level that many people follow to buy bottom opportunities. historically, [200 haftalık SMA] It has basically been where Bitcoin has closed above on the weekly or higher timeframes…
There is a high probability that we will see the $22,300 level where the moving average currently sits as a strong possibility for a potential bottom.”
Bitcoin is currently located at $22,235. While BTC is below the 200-week SMA, Rager highlights that the bearish move could be a bought wick.
“Even if it wicks below that level, I think a lot of people, even with a wick, especially bigger players, will probably buy from here.”
While the 200-week SMA has historically allowed Bitcoin to hit bear market lows, Rager says BTC could still drop based on the percentage of retracement from its all-time high. Here is the analyst’s second bottom target:
“If you look from 2013 to 2015, you’ll see an 80% drop in price there. At the latest all-time high [20.000 dolar]From December 2017 to November 2018, there was an 83%, 84% retracement… So basically, there is historically over 80% retracement from the all-time high during market cycles.
Now the problem with that is that from the all-time high of $69,000 Bitcoin’s previous wick has only gone back 63%, and even if we descended to the 200-week simple moving average, it’s only about 67%, 68% from the all-time high. It means there will be a decline.”
According to Rager, an 80% drop from BTC’s all-time high would push Bitcoin to the $14,000 price level. The analyst emphasizes that the price area in question offers solid support for BTC from a higher time frame perspective.
“At this point the block zone has dropped from around $17,000 to $14,000, you will notice that this is also the area where the price declined during the 2019 uptrend after the bottom and before the black swan event. Then it went up again, had some trouble, eventually went up, went down again and retested the level and went up again. So if it drops below the 200-week SMA, I think this is a good place to buy.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.