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Bitcoin can anchor this level ›CoinTürk

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Reading time: 3 Minute

As the tense expectation in the cryptocurrency market continues, predictions that Bitcoin (BTC) could drop as low as $ 10,000 are also on the agenda.

Has Bitcoin hit rock bottom?

Lark Davis, a leading market analyst, in his latest video bitcoin made startling statements about price action. According to Davis, the focus isn’t on Bitcoin dropping to $ 10,000. Instead, analysts should focus on the lower trendline that has formed since 2017. Because this current bear market has made most of the historical patterns obsolete. The analyst also said that BTC never closes weekly candles below the 200-week moving average. However, it has now happened. Additionally, the fact that Bitcoin closed last month with a drop of around 40 percent has sounded alarm bells in the industry. June represents the worst monthly candle ever for Bitcoin. The historical models are broken because this time the situation is very different.

Therefore, the analyst recommends that traders focus on the lower trendline that has formed since 2017. Davies said this is a more reasonable level to look for a potential bottom. Using this trend line as a forecasting tool suggests that lows will be around $ 15,000. When Bitcoin finally reaches ground level, the market will enter what Davies calls the “despair process”. The price of bitcoin will move sideways for months. Davis predicts that many more people will sell their BTCs during this time.

There is a difficult July on the horizon!

One of the biggest concerns in the market is that Bitcoin miners will continue to sell their BTCs. Hence, this will be a major catalyst for the price drop. Davis says that even though the miners are selling, they don’t control most of the Bitcoin supply. Miners only check 50,000 to 60,000 Bitcoins per month. Therefore, the fear factor isn’t that big in this regard, according to Davis. Meanwhile, according to Davis, whales added 140,000 to their resources last month. bitcoin added. This amount is much more than what the miners sell. Small retail investors also added more than 36,000 Bitcoins last month. That’s ten times the amount of bitcoin miners are selling. However, Davis predicts a tough July for Bitcoin, mainly due to macroeconomic events.

Inflation data will be announced on July 13 and Fed meeting decisions will be announced on July 26. However, Davis believes there is a light at the end of the tunnel. For instance goods prices (such as oil and wheat) have started to decline significantly. These are starting to have a ripple effect in drops. For example, the cost of shipping a container from Shanghai to Los Angeles dropped 38%. This means a huge reduction in shipping costs. Davis explained that if inflation data falls and federal interest rates rise by only 0.5% instead of 0.75%, the rally is occurring. However, he said the market should be prepared for the opposite of this optimistic scenario.

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