Crypto expert Vivek has revealed that Bitcoin has entered a buy zone that has led to parabolic rallies in the past bull cycles. This is because analysts predict that BTC is at risk of falling to the psychological level of $70,000, with the leading crypto showing weakness on shorter time frames.
Bitcoin enters historic buy zone that has sparked parabolic rallies
In one X messageVivek stated that Bitcoin has entered the best buy zone of this cycle, similar to the buy zones in 2018 and 2022 bear cyclesjust before BTC rose 1,700% and 660% respectively. The expert stated that a parabolic rally is next as the same setup has appeared again.
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Bitcoin has entered this buy zone after the latest decline to the lower $70,000 range USA and Iran have still not reached a peace agreement. Crypto analyst Altcoin Sherpa stated that BTC doesn’t give him much confidence on the lower time frames at this level. He added that he hoped for a recovery, but that the leading cryptocurrency is still likely to fall to $70,000 or even lower.
Bitcoin notably rose above $73,000 yesterday President Donald Trump’s statement that the naval blockade at the Strait of Hormuz will be abolished. BTC also rose when the president said he was about to make a decision on the draft US-Iran deal. However, Trump failed to announce his final decision on the agreement. Iran has also confirmed that a draft agreement exists but has yet to ratify it. A potential deal between the US and Iran is positive for BTC and the broader crypto market as it will alleviate inflationary pressures caused by the war.
Analyst reiterates bear market thesis
In one X messagecrypto analyst Colin reiterated his bear market thesis for Bitcoin, noting that BTC has always fallen 77% or more from peak to peak. bear market bottom. He noted that a 70% drop would mean BTC could fall to $38,000 from its October high of $126,000. The analyst added that any bear market bottom above $40,000 would be quite bullish as it would be better than previous bear market bottoms.
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In another X messagehe opined that the delayed impact of extremely low oil reserves could drag the Bitcoin price down later. The analyst also predicted that the next local top of the S&P 500 will be marked by an oil price breakout. Colin noted that it takes time for the effects of the war between the US and Iran trickle down and be felt by ordinary people.
At the time of writing, the Bitcoin price is trading around $73,300, down in the past 24 hours, according to facts from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com