A popular crypto trader thinks the asset is approaching a price zone that could offer a very favorable risk-reward ratio for long-term Bitcoin investors.
Koinfinans.com As we reported, the crypto strategist known by the alias Rekt Capital has told his 320,900 Twitter followers that the current cycle may be different for Bitcoin. told. According to the trader, this is because the leading digital asset is trading below the 200-week moving average (MA). Under normal circumstances, the 200-week MA is an indicator that sets the bottom of the leading crypto.
“Historically, the 200-week MA has been a bottom indicator for BTC. Things might be a little different this cycle. Instead of bottoming out at the 200-week MA, BTC could form a macro range below it. Any level below the 200-week MA will most likely represent the highest opportunity.”
According to the crypto strategist, Bitcoin will likely face the depletion of sellers as it trades below the 200-week moving average. Because at some point, long-term investors may switch to buying BTC in a price area that offers maximum reward.
“Throughout its entire history, BTC has always diverged below the 200-week MA, so what about this time? The bearish divergence did not show a strong/rapid rebound above the 200-week MA.
BTC recovery may take longer, but this is still a bearish divergence. BTC is reaching historic oversold levels. At some point, this oversold will coincide with the point of maximum financial opportunity.”
Rekt Capital also adds that although currently in a strong downtrend, Bitcoin will eventually reach an end that will open the door to a new bull cycle.
“BTC may still be in the ‘Accelerating Downtrend’ phase of its correction, but this phase precedes the ‘Multi-month Consolidation’ phase which will precede the ‘New Macro Uptrend’ phase.”
You can check the price movements here.
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.