Analyst Puts Bitcoin Bottom At $50,000, Here’s Why
October 22 2021 - 7:00PM
NEWSBTC
With bitcoin rallying, all the focus has been on predicting where
the price of the asset will be by the end of the year. The digital
asset is undoubtedly going to enter a period where various crashes
will send the price down, popularly known as a bear market. Not a
lot of attention has been paid to where the price of the asset
might bottom out when the market inevitably goes into another bear
market. This usually long stretch of low momentum has seen bitcoin
lose 94%, 87%, and 84% of its peak value respectively in the last
three bear markets. One recurring theme of the bear markets has
been the diminishing percentages of total value lost. At this rate,
it is expected that BTC will see between 75% and 80% loss from its
peak this cycle. Market analyst Justin Bennett uses this to predict
where BTC will bottom out next. The Next Bitcoin Bottom Bennett put
the next bitcoin bottom at $50,000 after analyzing the possible
price movements of the digital asset. With the current cycle, the
analyst sees the price of bitcoin hitting $200,000 before the bull
run is over, hence a 75% to 80% pullback in a bear market will see
the bottom of the asset land around the $50,000 range. Related
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In October This bottom is solely based on the cryptocurrency
hitting the price range that Bennett expects the asset to peak at
by the end of the rally. If BTC does not hit this price point
before the bull rally is over then we might see a BTC bottom land
at a much lower price range. BTC goes into the red ahead of Friday
opening | Source: BTCUSD on TradingView.com Bennett’s pullback
analysis has a lot of credit given that markets are historically
known to see lower pullbacks as assets mature. So the 75% to 80%
mark does resonate with what the market is known to do. However, if
the price of BTC falls short of Bennett’s prediction or doesn’t
move the needle much from its current price point, then the BTC
bottom may land in the $10,000 to $15,000 range using the pullback
analysis. The Peak Before The Fall Bennett’s analysis did not focus
solely on the crash of the digital asset. He put forward his
argument for the price of BTC at $200,000 using technical analysis
of the market. The analyst points to Fibonacci extensions as
indicators of where the price of bitcoin may peak during this
cycle. For the Fibonacci extensions, comparisons between the 2.272
and 2.414 extensions from previous cycles have both given a target
area which the asset had hit both times. Going by this, Bennett
sees the asset peaking between $207,000 and $270,000 before the
current cycle is over. Related Reading | Bitcoin New All-Time
Cleared, $100,000 Straight Ahead? Moving forward, the analyst plans
to use the monthly RSI to time market exits “Notice how BTC tends
to end cycles when the monthly RSI reaches above 90,” Bennett says.
“It’s also exhibited a double top pattern each cycle, which leads
me to believe it happens again.” Bennett plans to use a combination
of net unrealized profit/loss (NUPL) and the monthly RSI to slowly
exit the asset over the next couple of months. Featured image from
YouTube, chart from TradingView.com
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