Crypto analyst Altcoin Sherpa recently suggested that the Bitcoin bottom isn’t yet in and that the flagship crypto could still drop to recent lows. Meanwhile, other crypto analysts like Mikybull Cypto have made a case for why the underside is in and suggested that it’s unlikely that Bitcoin will drop below $50,000 again.
Bitcoin Bottom Is Likely At The $40,000 Range
Altcoin Sherpa mentioned in an X (formerly Twitter) post that Bitcoin is more likely to search out its bottom on the $40,000 range moderately than at 50,000. He noted that this may mean a “few more nasty wicks, a number of more liquidations, and a bit more pain” because the flagship crypto could still drop below the psychological level of $50,000.
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Source: X
The analyst made these statements while predicting how the following few months could play out for Bitcoin and the broader crypto market. Altcoin Sherpa added that he expects Bitcoin’s price to range for the following one to 4 months. He further predicted that the market would witness “temporary pockets of altcoin moves,” resulting in euphoria amongst market participants.
Why The BTC Bottom Is In
Mikybull Crypto offered a special view and explained why the Bitcoin bottom is already in, with the flagship crypto unlikely to drop below $50,000. Using the Elliot Wave Theory to investigate Bitcoin’s price motion, the analyst mentioned that the chart shows that the wave 4 macro correction is ending. He remarked that wave five will take Bitcoin to a minimum goal of $135,000, which should occur in the following few months.
Source: X
Mikybull Crypto further alluded to the spike within the volatility index (VIX), which he noted normally signals a macro bottom, similar to it did in 2020. The Relative Strength Index (RSI) is one other indicator the analyst highlighted to point out that the macro bottom is in. He added that the Bank of Japan’s assurance of no further rate hikes until the market stabilizes has also helped to cut back the pressure on Japan’s carry trade,
Source: X
Lastly, Mikybull Crypto mentioned that Bitcoin’s funding rate is in negative territory, which normally results in a brief squeeze. He added that the Spot Bitcoin ETFs trading volume is on a recent level, and whale accumulation for the past thirty days has never slowed, which he claimed shows that institutional investors are bidding moderately than distributing.
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Cryptoquant’s CEO Ki Young Ju recently revealed that 404,448 BTC have been moved to everlasting holder addresses over the past 30 days. He suggested that institutional investors are likely those accumulating these bitcoins. The crypto founder added that retail investors would regret not buying the flagship crypto because they were afraid of the bearish narratives currently surrounding Bitcoin.
On the time of writing, Bitcoin is trading at around $56,800, up over 2% within the last 24 hours, in keeping with data from CoinMarketCap.
BTC price jumps above $57,000 | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com