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It’s not a secret that Bitcoin hasn’t done well over the past few days and weeks; since the weekend’s $9,200 peak, the cryptocurrency has lost nearly 18%, and since the $10,600 peak in February, BTC has shed over 25%. In the process of this brutal move, hundreds of millions worth of leveraged positions have been liquidated.
Furthermore, with a harrowing macro outlook and Bitcoin seemingly becoming correlated with the stock market, some have been wondering if BTC could enter back into a bear market. One analyst, in fact, warned of a potential return to $4,000.
Despite these fears, many are staying optimistic. In fact, the trader who called the return to $7,500 when investors were by and large expecting a further rally above $10,000 recently floated the scenario that BTC is in the midst of bottoming.
Related Reading: Top Macro Analyst Explains Why Bitcoin Has Crashed 17% Since $9,200
Accurate Analyst Floats Idea That Bitcoin Is Bottoming
When BTC was floating above $9,000 near the end of February, Nik Yaremchuk, analyst at Adaptive Capital (a crypto hedge fund), floated the below scenario, calling for the leading cryptocurrency to retrace to $7,500, which then would’ve been a drop of around 20%.
$BTC: $7.5k… do you hear me? pic.twitter.com/QAENWVEcMf
— Nik (@truenomic) February 25, 2020
While many actually unfollowed him for making this prediction, today he was proven right (effectively right anyway) when BTC hit $7,590, bouncing just a bit higher than his targeted price.
Yaremchuk now predicts that Bitcoin may actually be bottoming, writing in a tweet published just an hour ago as of the time of this article’s writing that the cryptocurrency is potentially forming a textbook bottom as defined by the studies of Richard Wyckoff, a historic technical analysis expert.
The cryptocurrency following the textbook scenario will see it move sideways here, briefly dip to establish a new low around $7,500, then rally to break out of the accumulation range at $8,200.
I think there will be a sideway here, then we will get another low and then after that we will break $8,200. BTW, look at the Wyckoff scenario. Perhaps this will not be a new low, just a sideway.$BTC pic.twitter.com/ElUHTgv6Ga
— Nik (@truenomic) March 11, 2020
This is important as a similar Wyckoff Accumulation pattern was found at the bottom in December and at the start of January. While this pattern isn’t of the same size (meaning across the same time frame), BTC completing this pattern may set the stage for a stronger surge towards $8,500.
The Adaptive Capital analyst isn’t the only prominent trader to have expressed bullishness about Bitcoin’s price at current.
Analyst JB recently noted that there is a confluence of technical analysis signs suggesting Bitcoin could soon see some strength:
- The price of the cryptocurrency has bounced cleanly off the key $7,700 support level, printing a number of wicks under that level, suggesting there remains buying interest.
#Bitcoin 1D setup: Support level, OTE long zone, VP gap hit, Willy over-sold and potential MACD bull divergence. pic.twitter.com/3020sXqnUj
— jb (@blackswan0815) March 11, 2020
- BTC hit a volume profile gap, bouncing off it.
- The “Willy” indicator is oversold, which last took place near the $6,400 bottom in December, then once before prior to the 40% “China pump” seen in October.
- Bitcoin is printing a potential divergence with the one-day Moving Average Convergence Divergence (MACD).
Featured Image from Shutterstock
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