A Big Bitcoin Movement Is Expected In The Next 48 Hours, Is BTC Price Heading To The Bottom?
Bitcoin continues to struggle around $20,000 levels despite volatility and market pressure remains significantly high. The depressed trend of the asset may be due to several external factors which mean that the markets are expected to remain volatile in September.
However, the BTC price is expected to bottom in October or November this year, with fewer opportunities for a sharp decline.
BTC price, after the recent jump had cut through the huge falling wedge and was preparing to come back to reach levels above $21,000. However, the fresh employment rates in the US were also believed to have given the asset a significant boost. Sadly, the price fell midway and now shows the huge likelihood of a bottom below $19,000 over the weekend.
Currently, the BTC price is hovering within a converging channel, which looks a bit like a symmetrical triangle. The asset is testing the lower support of the channel and trying hard to rebound. However, the bulls are using all resources to reverse the bearish trend, but lag behind in volume and therefore provide a good opportunity for the bears to take over.
No doubt the asset may eventually recover nicely, but in the larger time frame, there is very less possibility of a Bitcoin bull run in 2022.
No “V-shaped” recovery for Bitcoin
Bitcoin in the larger time frame is quite bearish, regardless of the fact that the asset is showing significant bullish momentum in the short term. The asset in the next 45 days is expected to stabilize a remarkable downtrend and may also form new bottoms. While the possibility of a firm setback is extremely less.
A well-known analyst, Valerio claims that the Bitcoin bottom will be reached in October or November citing the BTC price movements since the first halving. According to the chart above, Bitcoin peaks within 2 years of the previous halving and plummets further. However, after reaching the bottom, the asset trades sideways until the next halving.
Considering the previous trends, the BTC bottoms have not yet been reached, which could be reached in Q4 2022. Specifying the targets, the analysts believe that the bottoms could be below $17,500. However, he also sheds light on the recovery that may not be a V-shaped one as the BTC price may trade sideways around the lower levels for a couple of weeks.
Therefore, the Bitcoin bulls are expected to be cautious as more bull traps may be laid as the trend may remain strongly bearish for a longer period.
