The 2021 Bear Market Meltdown: A Look at Bitcoin’s Potential Bottom
A respected analyst who accurately predicted the start of the 2021 bear market downturn now believes that Bitcoin (BTC) has likely hit its low, based on historical trends. Pseudonymous analyst Dave the Wave, with a sizable following on X, highlights Bitcoin’s monthly moving average convergence divergence (MACD) indicator for insights.
- Dave the Wave observes a slight contraction in Bitcoin’s MACD, indicating a temporary stall in the bullish trend.
- MACD serves as a momentum indicator for trend changes in trading.
- The analyst notes that despite the contraction, BTC’s price might not plummet significantly since the MACD levels do not mirror previous bull markets’ peaks.
“While there is a decline in the BTC monthly histogram, with momentum weakening, I am not convinced that prices will drop significantly lower due to factors like the MACD not hitting its peak and the market maturing. We may witness a different pattern unfolding over the long term,” elaborates Dave the Wave.
Chart Analysis and Market Sentiment
Reviewing the analyst’s charts, it appears that Bitcoin’s monthly MACD has not yet approached the diagonal resistance line, suggesting a prolonged bull market cycle. On a weekly basis, the current MACD setup for Bitcoin resembles that of July 2016, post-halving and pre-bull run.
- Comparing the current weekly BTC MACD to historical data, the analyst draws parallels with past trends.
- An emphasis is placed on the MACD cross coinciding with price lows.
Current Bitcoin Price and Future Predictions
As of the latest update, Bitcoin is valued at $61,448, indicating stability amidst market analysis and predictions about the potential bottom for the cryptocurrency.
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The post Trader Who Called May 2021 Collapse Updates Bitcoin Outlook, Says Bottom Likely In for BTC – Here’s Why appeared first on The Daily Hodl.
Hot Take: Key Insights on Bitcoin’s Potential Bottom
Explore the latest analysis by a prominent trader who accurately predicted the onset of the 2021 bear market to understand Bitcoin’s current stance. With historical patterns and technical indicators in focus, the outlook for Bitcoin’s bottom appears optimistic according to this expert viewpoint.
- Insights from the analyst’s MACD analysis provide valuable cues on Bitcoin’s price movements.
- Comparisons with historical data and market sentiment suggest a potential turnaround for BTC.
- Stay updated on Bitcoin’s price action and market trajectory for informed decision-making.
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