Crypto analyst Coinvo has explained why Bitcoin may be close to a low, which could trigger a rally to new highs. This is because BTC continues to face downward pressure due to rising tensions between the currencies the US and Iran.
Why Bitcoin May Hit a Bear Market Bottom Soon
In one X messageCoinvo alluded to the Bitcoin monthly chart, noting that the leading cryptocurrency has hit its bear market exactly 23 months after the bear market. all-time high (ATH) in every single cycle. BTC is currently at 23 months, which the analyst says is a sign to buy more Bitcoin as this pattern has “never failed.”
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The analyst also predicted that Bitcoin could see a massive expansion once it bottoms out as high as $150,000. This means that BTC could still surpass its current ATH of $126,000, which it registered in October last year. Meanwhile in another X messageCoinvo revealed that Bitcoin replicates the exact same thing pattern of a bull market like gold did in the 1970s. He added that this pattern has never failed, suggesting that BTC could see a bullish reversal soon.
Bitcoin is currently facing downward pressure the war between the US and Iran continues to escalate. The war has pushed oil prices up to $115 today, raising concerns that it could drive up inflation. However, Coinvo indicated that rising oil prices may not be bearish for BTC. In one X messageHe stated that most people think that rising oil prices due to inflation are bearish for the leading countries, but history says the opposite. This came as he revealed that BTC’s secret bull run signal has just flashed for the fourth time in history.
Bull Trap may form for BTC
Popular crypto analyst Willy Woo warned that a bull trap is developing for Bitcoin, while also indicating that a bottom has not yet been reached. He stated that BTC is still “firmly” in the middle of its development bear market through a lens of long-term liquidity. The analyst also noted that after rapid downside gains, as the market has seen, BTC tends to trade sideways and then stage a rally, testing resistance.
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Willy Woo also revealed that the current circumstances are a Bitcoin rally to test the mid-$80,000 range, which is the cost basis for short-term investors. This rally seems more likely, especially considering that BTC sold off quickly in the early bear market. The analyst highlighted that investor flows have recovered consistently since mid-February, which could fuel this recovery to $80,000. He added that expected stock volatility suggests more risk-taking in the coming weeks.
At the time of writing, the Bitcoin price is trading around $67,800, up in the past 24 hours. facts from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com