Crypto analyst Crypto Rover has pointed out a trendline that Bitcoin has not broken below in any market cycle. The leading cryptocurrency has now reached this trendline, offering optimism that it could bounce off that level as before bear cycles.
Bitcoin hits trendline that has led to parabolic rallies
In one X messageCrypto Rover revealed that Bitcoin has once again reached the trend line it has never broken in nine years. Instead of, BTC has seen parabolic rallies when it hits this trend line. In 2017, the price rose 1,300% after reaching this trend line; in 2018 it rose 1,900% after being touched; and in 2020 it rose another 1,900% after being touched. Bitcoin saw another parabolic rally of 700% after reaching this trendline in 2022.
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Now Bitcoin has touched this trendline again, offering optimism that it could rebound from this region as it has in previous cycles. However, in another X messageCrypto Rover suggested that BTC has not yet found a bottom and could still fall below $60,000 before bottoming out. This came as the analyst alluded to The realized price of BTC.
He noted that the short-term holders’ realized price (STH) of $74,000 has been reached, but the realized price of $53,600 and the long-term holders’ (LTH) realized price of $50,000 has not yet been reached. Crypto Rover added that every previous cycle bottom has traded below the realized price and every major flush has kissed the LTH line. As such, BTC will likely see another decline before bottoming out.
Bitcoin is also at risk of another decline with the War between the US and Iran to escalate again. The US carried out attacks on military targets in Iran, leading to retaliatory attacks on US military bases in the Gulf region.
A drop below $50,000 is also a possibility
Crypto analyst Ali Martinez stated that Bitcoin could still fall below $50,000. This came as he pointed out the Investor Price, which he said is currently $48,300. He said this level is an important area he is looking forward to long-term accumulation. The analyst had described this metric as one of the most important BTC on-chain metrics.
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Martinez explained that this metric measures the average purchase price of all economically circulating Bitcoin, filtering out permanently lost coins to provide a more realistic market-wide cost basis. However, it is worth noting that the analyst had previously said that there were signs that BTC was about to hit a market bottom. He pointed to the 1.0-0.8 MVRV tireswhich correspond to $53,900 and $43,150.
At the time of writing, the Bitcoin price is trading around $62,600, up in the past 24 hours. facts from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com