Bitcoin Has Never Broken This Line Before And Price Just Touched It Again
Crypto analyst Crypto Rover has pointed to a trendline that Bitcoin has never broken below in every market cycle. The leading crypto has now touched this trendline, providing optimism that it could bounce from that level as it did in previous bear cycles.
Bitcoin Touches Trendline That Has Led To Parabolic Rallies
In an X post, Crypto Rover revealed that Bitcoin has again touched the trendline it has never broken below in 9 years. Instead, BTC has seen parabolic rallies whenever it touches this trendline. In 2017, it rallied 1,300% after touching this trendline; in 2018, it rallied 1,900% after touching it; and in 2020, it rallied another 1,900% after touching it. Bitcoin saw another parabolic rally of 700% after touching this trendline in 2022.
Now, Bitcoin has once again touched this trendline, offering optimism that it could bounce from this region as it did in past cycles. However, in another X post, Crypto Rover suggested that BTC has not yet found a bottom and could still drop below $60,000 before it bottoms. This came as the analyst alluded to BTC’s realized price.
Source:
He noted that the short-term holders’ (STH) realized price at $74,000 has been reached, but that the realized price of $53,600 and the long-term holders’ (LTH) realized price of $50,000 have not been reached. Crypto Rover added that every prior cycle bottom has traded below the realized price and that every major flush has kissed the LTH line. As such, BTC is still likely to see another move down before it bottoms.
Bitcoin is also at risk of another decline with the U.S.-Iran war escalating again. The U.S. carried out strikes against military targets in Iran, which led to retaliatory attacks against U.S. military bases in the Gulf region.
A Drop Below $50,000 Is Also A Possibility
Crypto analyst Ali Martinez has indicated that Bitcoin could still drop below $50,000. This came as he pointed to the Investor Price, which he noted is currently $48,300. He said that this level is a key area he is watching for long-term accumulation. The analyst had described this metric as one of the most important BTC on-chain metrics.
Martinez explained that this metric measures the average acquisition 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 earlier said that there were signs that BTC was about to reach a market bottom. He pointed to the 1.0-0.8 MVRV bands, which align at $53,900 and $43,150.
At the time of writing, the Bitcoin price is trading at around $62,600, up in the last 24 hours.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Federal Reserve meeting minutes turn "hawkish"! Most officials support another rate hike this year, US dollar continues to rise
The latest minutes released by the Federal Reserve show that all 19 officials support a rate hike in September, and most participants believe that further interest rate increases may still be needed before the end of the year.
High yields on US Treasuries start attracting buyers; $39 billion 10-year Treasury auction sees strong demand as long-end yields give back gains
U.S. Treasury bonds showed mixed performance on Wednesday after a $39 billion 10-year Treasury auction saw strong demand, indicating that as yields reach multi-decade highs, some major investors are starting to re-enter the market.
Overnight U.S. Stocks | Federal Reserve officials expect another rate hike before the end of the year, three major indexes closed lower, Micron Technology (MU.US) rose 4%
At the close, the Dow Jones Industrial Average fell by 341.41 points, down 0.66%, to 51,179.87 points; the S&P 500 Index dropped by 17.20 points, down 0.22%, to 7,801.73 points; and the Nasdaq Composite Index declined by 61.20 points, down 0.22%, to 27,538.69 points.
Federal Reserve meeting minutes: All 19 policymakers support a rate hike in September, but reasons vary; most expect further hikes this year, suggesting no urgency in October.
Most officials view a September interest rate hike as an "insurance" measure against stubborn inflation; a minority see it as a necessary step to curb inflation. Overall, there is no indication of a desire to push for consecutive rate hikes. The "New Fed News Agency" emphasized the minutes: "Most participants believe that it may be appropriate to raise interest rates again before the end of the year." Nearly all officials believe inflation remains elevated and the labor market is close to full employment. Many noted that, despite the rise in long-term U.S. Treasury yields, financial conditions are still conducive to economic growth. Some officials believe that AI will boost investment and productivity, but may also contribute to inflation. The minutes revealed that the U.S.-Japan joint intervention in July to support the yen was a U.S. Treasury action, with no Federal Reserve funds used.
Crypto prices
More
