Did Bitcoin (BTC) Bottom This Cycle at $61,000?

Bitcoin’s ongoing correction could be nearing its end and the market could see a rally in the coming weeks, judging by the analysis of cryptocurrency trader pseudonym Teddy.

According to his tweet, if history repeats itself, the bitcoin pool for this correction could be around $61,000.

Bitcoin down at $61,000

Teddy explained that all the corrections experienced in this bitcoin (BTC) bull run have landed and ended at the asset’s 21-year weekly exponential moving average (EMA). The EMA is an indicator that tracks the price of an asset over time, giving more weight to more recent data points, which are considered more relevant than older data.

It is worth noting that the EMA responds more quickly to price changes than the simple moving average, its fellow indicator.

As BTC has a history of bouncing off its EMA, Teddy believes the leading cryptocurrency could drop to $61,000 soon. At the time of writing, BTC was trading at $61,500 after briefly falling below $61,000 to touch $60,900. It remains to be seen whether Teddy’s predictions will come true.

More dip looms for BTC

While members of the crypto community are expecting a bullish reversal soon as they believe it is imminent, certain factors suggest that the market may be in for more bloodbath.

Last week, CryptoQuant revealed a lack of bullish momentum in the crypto market, as seen in the low liquidity of stablecoins and weak growth in demand for BTC from large investors. Analysts at the crypto intelligence platform further revealed that whales’ bitcoin demand was growing at a monthly rate of 4.8%, traders were still reducing their holdings, and stablecoin liquidity was record its slowest pace since November 2023.

Additionally, US BTC and ETH investors, who are usually a major driving force during rallies, have seen weak demand growth. Reflecting the intensity of this demand, the US Bitcoin exchange-traded fund (ETF) market has seen steady outflows since June 13.

CryptoPotato also reported that BTC could lose more of its value as miners have not yet capitulated. Bitcoin miners have continued to offload their assets as operating costs, hash rates, and pressures rise. Analysts expect the weaker miners to “die” and the hashrate to recover before BTC can resume its northward movement.

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