bitcoin [BTC] It hit a 2022 low on June 18 when it broke below $17,700. Since then, the top-ranked cryptocurrency has moved up and down the charts. However, BTC just surged and did not reach such levels again, spending most of the time above $20,000.
Now, there may be another side to BTC price action.According to CryptoQuant analyst Tomáš Hančar, BTC is close Bottoming – he cites it as almost a third.
How did this happen?
According to Hančar’s analysis, the 20-day Simple Moving Average (SMA) has been stuck at a neutral level for three months.
Hančar went on to point out that the Long Term Holder (LTH) output margin within the 20 SMA showed a bottom indicating a third. He mentioned that this situation is likely to turn in a bear market in 2018/2019. Hanchar said,
“In terms of the 20-day SMA smoothing of technical indicators, we have seen what appears to be a rebound from the 2020 actual LTH SOPR low between July 10 and 14, coincidentally not far from the 0.49 level, representing The lowest point of the 2015 and 2018/2019 cyclical bottoms“
While the analysis may suggest that investors can start buying, Hančar stresses the need for caution. He noted that another dip below $20,000 is possible before a guaranteed upside.
Who else agrees?
Earlier, Glassnode Suggest The bear market isn’t quite over yet. So are the other metrics in sync with Hančar’s forecast?
According to the BTC chart, the current market remains neutral as the blue 20-day exponential moving average (EMA) and the 50 EMA (yellow) are almost at the same level. In this trend, short-term traders may want to watch the next BTC move.
On the longer time frame, the 200 EMA (cyan) is showing signs of an uptrend and is only holding BTC price below $22,500. This stance could mean that Hančar’s BTC price prediction could become a reality.
At press time, BTC is trading at 23,176 Coin market value. With a 1.09% uptick, buying more BTC can be risky as long-term investors’ wait-and-see preferences may pay off.