A popular crypto analyst has evaluated historical data to determine if the price of Bitcoin (BTC) has truly bottomed out after a long downtrend.
Koinfinans.com As we noted, in a new strategy session, Nicholas Merten warned investors on Saturday that Bitcoin is surging from weekly lows after BTC briefly plunged below $18,000.
“I don’t want people to get too excited. That we might see more gains, maybe even into this range here. [22.300 dolar civarı] While I feel we can bounce back, I want to highlight the difference between where we are now with a 75% drop and an 80% retracement.
One of the biggest challenges some people have is understanding how those dips can get exponentially worse, even if you’re technically down a few single-digit percentage points.
What if we go from 75% to the typical 80% correction? Not just a few hundred dollars or a thousand dollars down, no, we’d be going from $17,500 Bitcoin down to $13,700. During the bull market of June 2019, we would test the $14,000 range, where we saw the price top or at least form a temporary top.”
The strategist is not sure that the Bitcoin price will drop exactly 80% from its all-time high of $69,000 in November 2021. Despite this, he goes on to say that broader macroeconomic volatility could push the leading crypto lower despite historical trends and fundamental strength.
“While I usually expect corrections to weaken over time, given the macro environment we’re in right now, we’re probably going to get the typical 80% correction.”
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.