Bitcoin has been showing signs of reaching the bottom of its downward cycle for some time. A Twitter analyst, however, says that a certain indicator can also predict the bottom of the next Bitcoin price cycle.
To Report Cointelegraph, an analyst named Allen (Alen) on Twitter, on October 13 (21 Mehr) in an article, pointed out the similarity of the recent price movements of Bitcoin with previous historical cycles.
Some traders are worried about the deterioration of the digital currency market in the coming months. However, on-chain indicators have long indicated that the 2022 bear market is similar to other bear markets in Bitcoin history.
According to Allen, the Stochastic indicator in the one-month view of the Bitcoin market is repeating the same trend seen in the down cycle of 2014 and 2018.
Stockstick oscillators are classic technical tools that are used to detect price cycles and upward and downward movements.
The floor of the Bitcoin Stock Stick Indicator on the monthly view has so far matched the floor of various bearish price cycles without exception. Currently, this indicator has again reached levels that correspond to the bottom of previous cycles; Numbers that have been seen only three times before in this index.
By using this index, in addition to detecting the bottom of the current trend, it is also possible to predict the bottom of the next price cycles. Using available data, Allen has predicted that the bottom of Bitcoin’s next cycle will be $35,000.
He said about this:
Bitcoin forms its new flag chart pattern in the sequence of the previous flag configuration. The yellow area, originating from the stochastic indicator, indicates (at least) the formation of the second half of the flag pattern; Where we are now. The bottom of the next cycle is $35,000, and we always see a quick rebound after a deep drop. Overcome your emotions and do not waver.
The current state of the stock index may give some hope to traders who have seen the price of Bitcoin fall by 75% over the past 11 months.
Although many analysts and reputable sources believe that the main and final bottom of the current bear market has yet to emerge, there is still much uncertainty regarding Bitcoin’s short-term price movements.
There are very few people who are optimistic about the current market trend, among them is Philip Swift, an analyst who believes that the recent downward trend of Bitcoin will end by the end of this year.
The rest of the analysts, however, are less hopeful. Alasdair Macleod, the senior analyst of Goldmoney group, says in general regarding the value of financial assets, until the Central Bank of America changes its decision to increase the bank interest rate in this country, investors will not see a good day.