This Top Analyst Says History Suggests Bitcoin (BTC) Is Yet To Bottom, Sets His Price Target

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?”

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.”

Read Also: Bloomberg Senior Strategist: Bitcoin (BTC) Will Be One of the Best Assets on Earth Once Inflation Subsides

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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