A popular crypto analyst has revealed a new price forecast for the leading digital asset Bitcoin (BTC), based on historical data.
Nicknamed analyst Rekt Capital said in a new video update that BTC has recently hit the death cross once again, meaning that its short-term moving average has fallen below its long-term moving average.
According to the analyst, historically large price drops tend to happen before and after Bitcoin reaches its death cross.
“The death cross is something that happens before macro downtrends. When we look at the intercept cycles, minus 73% is the decrease we saw over time 135 days before the first death cross occurred, which corresponds to late 2013-early 2014.”
The trader added that with the exception of 2021, Bitcoin has formulated a similar model every time it reaches the death cross over the years. According to Rekt Capital, this divergence in 2021 did not last long. BTC’s recent death cross has reformed the pattern.
“While the period of 2021 is a deviation from historical trends and the formula that the death intersection actually precedes a trough and a peak, in this current era, we are actually seeing a return to a formula where the death intersections precede more negativity.”
However, the analyst said that he does not believe that BTC will see such a big drop, even though it is a historical example of a big drop. It also laid out a price target for investors to consider regarding a potential windfall.
“We cannot say that there is a guarantee that we will see minus 70%, because this happened in the 2013 cycle. We are in the 2022 cycle, almost 10 years have passed.
Can we really see such a volatile 70% retracement? That seems unlikely… but it’s all about paying attention to the $22,000 price zone.”
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.