Rekt Capital, a pseudonymous crypto analyst and trader is observing one key metric to determine whether Bitcoin (BTC), the largest cryptocurrency by market capitalization, has finally bottomed in the current bear market.
In a thread of tweets shared a while ago with his teeming Twitter followers, the popular analyst described how the price of Bitcoin (BTC) is affected by its exponential moving average (EMA), a calculation where the most recent data points greater significance.
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Rekt Capital tweeted, “BTC tends to confirm uptrends when it breaks above the blue 50-week EMA $BTC tends to confirm maximum financial opportunity when it reaches & breaks down from the black 200-week EMA Is the BTC bottom in already or is there more downside to come?”
#BTC tends to confirm uptrends when it breaks above the blue 50-week EMA$BTC tends to confirm maximum financial opportunity when it reaches & breaks down from the black 200-week EMA
Is the BTC bottom in already or is there more downside to come?
A thread…#Crypto #Bitcoin pic.twitter.com/Matflwh6uQ
— Rekt Capital (@rektcapital) June 7, 2022
In his analysis, the chartist also referenced a lot of significant past price moves, such as that of 2015, 2018, and 2020 before explaining that Bitcoin (BTC) is likely yet to bottom because its price remains 66% off from the 50-week EMA (WEMA).
Rekt Capital noted further:
“Key takeaway is that the first BTC bottom tends to form at least ~100% away from the blue 50-week EMA. And the second BTC bottom tends to form ~50-70% away from the 50 WEMA.
If this continues to be true then BTC hasn’t yet bottomed in this cycle… because the current local BTC bottom is 66% away from the blue 50-week EMA.
Typically the first BTC bottom is ~100% away and the second bottom 50-70% away from the 50 WEMA. This current situation resembles ‘second bottom behavior more than ‘first bottom’ price action.”
5.
Because the current local #BTC bottom is 66% away from the blue 50-week EMA
Typically the first $BTC bottom is ~100% away and the second bottom 50-70% away from the 50 WEMA
So this current situation resembles "second bottom" behaviour more than "first bottom" price action pic.twitter.com/bSjPHlORa4
— Rekt Capital (@rektcapital) June 7, 2022
Rekt Capital Expects Bitcoin at $20,000 Level before reaching Bottom
The chart guru concluded his analysis by targeting a price fall to relatively $20,000 for Bitcoin (BTC) before touching a cycle bottom. He said such a trend will historically satisfy the general tendency of Bitcoin to revisit its previous all-time highs before a new meteoric rally.
“Should BTC once again repeat a 100% separation from the blue 50-week EMA…
Then that could suggest a BTC bottom close to the ~$20,000 area. This would satisfy the general tendency of previous BTC all-time highs not being revisited during corrective periods.”
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