Crypto expert Tony Severino believes that not only is Bitcoin showing signs of a yearly top, but also that the BTC price may have reached a 16-year cyclical peak. This comes amid the recent crash of the flagship crypto to $60,000, sparking fears of a bear market.
Bitcoin may be showing signs of a spike amid a BTC price crash to $60,000
In one X messageSeverino alluded to Bitcoin’s annual chart, which he said resembles a 16-year cyclical peak rather than just an annual top. The expert also outlined several reasons why this appears to be the case big cyclical top for the BTC price. First, he noted that white candlesticks have become smaller and smaller over time, while black candlesticks engulf more white candles with each appearance.
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Furthermore, Severino highlighted that the Doji is at the top of a rising wedge pattern while the Evening Star is ongoing, which is a bearish reversal signal for BTC price. Meanwhile, the Fischer Transform crosses bearish with divergence, and the Stochastic crosses bearish after being rejected from 80. He added that Bitcoin’s Relative Strength Index (RSI). falls back below 70 after crossing above this level on the high time frame chart.
His analysis comes as the BTC price continues to decline, indicating that the crypto market may be in a bear market after last October’s peak. Bitcoin fell to a low of $60,000 earlier this week and suffered its biggest daily drop since the collapse of the FTX. Veteran trader Peter Brandt has done that too thought that Bitcoin is in a bear market and predicts it could still fall to $42,000 before hitting a bottom.
Reason for the recent BTC crash
BitMEX co-founder Arthur Hayes has commented on the reason for this recent Bitcoin crash, suggesting that it was due to external factors and not an ongoing bear market. In one X messagehe stated that BTC’s price dump was likely due to a dealer betting on BlackRock’s structured BTC ETF products. Notably, on the day of this crash, BlackRock’s IBIT recorded record trading volume of $10 billion to $60,000.
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Hayes’ comment is on the back of Bitcoin’s recovery above $70,000with the flagship crypto posting one of its biggest daily gains ever yesterday after crashing to $60,000. Galaxy Digital’s head of research, Alex Thorn, suggested that the drop to $60,000 could mark the bottom for the BTC price. This came as he noted that the 200-week MA, which is around $60,000, has historically been a strong entry point for long-term investors.
At the time of writing, the BTC price is trading around $70,000, up more than 6% in the past 24 hours, according to facts from CoinMarketCap.
Featured image of Pngtree, chart from Tradingview.com