A widely followed crypto analyst says he thinks Bitcoin (BTC) is in a strong position to carve out a bottom in the bear market.
In a new video, pseudonymous crypto strategist Rager recount his 206,000 Twitter followers that nothing is guaranteed in Bitcoin trading, but he acknowledges that BTC appears to be forming a base above $19,000.
“A lot of people wonder if this is the bottom of the cycle. It’s possible. We don’t know. What we do know is that it’s actually a really good place as far as a place to go. long term to accumulate Bitcoin… There is some pretty brilliant price action here when it comes to the bigger hand.
What you saw happening was that Bitcoin had been playing around that level around $19,000. And the reason why it bounced so many times is because it was the daily and weekly close of the all-time high of 2017. So it’s an important level [that] lots of people are watching. We had the vomit of the capital of the three arrows and the LUNA drama in June. We saw the selling pressure quite high there, but since then we don’t have any selling pressure like that.
Rager also takes a closer look at Bitcoin’s price action on Sept. 9, saying BTC’s reaction that day supports sentiment that the king of crypto may be bottoming out on its cycle.
“Could it be the bottom? It is certainly possible. I like to see this type of price action where it pulls people offside. People tend to be wrong.
Rager adds that Bitcoin is still closely correlated with the S&P 500 (SPX). He also says that Bitcoin is unlikely to print new cycle lows as long as the SPX is above 3,896 points.
“If the mainstream economy is doing pretty well, if stocks rebound, there’s no reason to really think Bitcoin is going to go from $12,000 to $13,000 anytime soon.”
At the time of writing, Bitcoin is changing hands for $21,341 while the S&P 500 closed the week at 4,067.35 points.
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