Crypto analyst Gargoyle has advised market participants not to buy Bitcoin until high volume is seen, which could mark the bottom. This comes in the middle The recent decline of BTC below the psychological level of $80,000, with the leading crypto at risk of another decline.
Analysts advise against buying Bitcoin until the bottom is confirmed
In one X messageGargoyle advised against buying Bitcoin until the bottom is confirmed. He indicated that the BTC bottom occurs when there is enormous volume and that this enormous volume has not yet occurred. The analyst hinted at the 2022/2023 cycle, when the capitulation peak marked the high point bottom for BTC.
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However, at this time this capitulation peak has not occurred The volume of Bitcoin still subdued, indicating that market participants are not yet panicking despite the downward trend. Gargoyle further noted that the hardest flush always comes after retail thinks it’s over for BTC, which then leads to a spike in volume as investors capitulate.
The analyst’s accompanying chart showed that Bitcoin could still fall to around $45,000 before bottoming out, while this could happen between now and early next year. Once that happens, BTC could see a reversal as it targets a new all-time high (ATH). Notably, BTC has rallied as high as $83,000 over the past week, raising optimism that the bear market may be over.
However, Bitcoin has since fallen below $80,000, raising concerns that the bear market is still in effect, as some analysts like Doctor Profit had warned. The analyst had also previously mentioned that BTC is likely to bottom later this year between September and October, based on its historical cycle patterns.
BTC will likely fall if the stock market crashes
Crypto analyst Colin warned that the current stock market pump is the only thing keeping Bitcoin afloat. He further noted that in the short term the S&P500 seems bullish after the recent megaphone breakout. However, in the longer term, the economic environment does not look good for these stocks, and by extension for BTC.
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Colin alluded to the CPI and the PPI, both of which are running very high and inflation is rising as a result of inflation War between the US and Iran. The analyst stated that this is not a favorable environment for a Bitcoin “super cycle” as some bulls claim. It’s worth noting that the market is also starting to price in a rate hike this year, which is bearish for the leading cryptocurrency. Since the macro environment doesn’t look good, Colin suggested that BTC will crash if the stock market sees a significant decline in the future.
At the time of writing, the Bitcoin price is trading around $79,000, down more than 2% in the past 24 hours. facts from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com