A popular crypto analyst noted that the ‘bullish’ sentiment about Bitcoin (BTC) remains even as the price of the leading crypto asset remains low.
Smart Contracter An analyst and trader known by the pseudonym stated on his Twitter account that Bitcoin has created a ‘reversal pattern’, also known as the ‘oscillation failure pattern’.
A swing failure pattern occurs when price fails to reach a new low in a downtrend or a new high in an uptrend, signaling a trend reversal.
Smart Contracter also added that the Bitcoin Fear & Greed Index, a sentiment indicator with values ranging from 0 to 100, remained in the lower quartile for days.
Values between 0-24 represent ‘extreme fear’ and scores between 25-49 represent ‘fear’. A score between 51 and 74 indicates market greed, while a score above 75 indicates extreme greed. The last time the score was above 24 was on January 3rd.
According to the crypto trader, the ending on January 18 without falling below $41,000 Bitcoin (BTC) price action will be an indication that the bottom has occurred.
“Structural support/0.618 for bitcoin [Fibonnaci seviyesi] A nice uptrend above is forming the Swing Failure Pattern, we’ve also been in the extreme fear zone for almost 3 weeks.
I think if the daily candle closes above roughly $41,000 an hour on Jan 18, 2021, the bottom has come.”
Bitcoin is trading at $41,901 at the time of writing, with the lowest level reached on January 18 at $41,250.
In mid-2018, bitcoin price While trading above $5,000, Smart Contracter correctly predicted that the flagship cryptocurrency would bottom around $3,200.
His prediction came true in December of that year when BTC dropped to $3,156 before a rally.
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.