Bitcoin Price Recovers Above $19,000, But Is The Attack Over?
Bitcoin has been able to regain some of its footing in the last 24 hours after it had fallen to the $18,000 level, taking the entire crypto market with it. Now, as the trading day opens on Tuesday, the digital asset has recovered above $19,000. But despite bitcoin appearing to form support just above $19,200, questions still abound in the market as to whether this is a false recovery.
Is the attack over?
Bitcoin’s move above $19,000 has been a 4% increase over the past 24 hours. Given the market’s tendency to form a take-out after such massive losses, the possibility that the downtrend is not over looming over the market continues.
However, in the one-week time frame, the digital asset continues to point towards selling pressure. It is the same as was recorded in the 2020 market just before the bull rally. But it’s important to note that the digital asset had gone through a full-blown bear market at the time, making it ripe for recovery.
At this time, bitcoin is still only entering its bear market phase, which means that any buying pressure will not lead to significant growth. That was the case in the month of August, where even though accumulation trends had grown, bitcoin was still unable to break above $25,000.
BTC settles above $19,200 | Source: BTCUSD on TradingView.com
The market movements point to the possibility of bitcoin forming a cycle bottom, which would mean that the buying pressure could be an indicator of a bull rally. But the market is still too volatile for a significant recovery.
Bitcoin In The Weeds
There is still a lot of strong sentiment around the fact that bitcoin has yet to bottom. Most of these analyzes are taken from previous bull and bear cycle trends where the digital asset had lost at least 80% of its value before starting another bull market trend. Puts the bottom of the current bear market around the $12,000 price point.
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Chief Market Strategist at InTheMoneyStocks.com, Gareth Soloway, has also echoed this forecast. In a recent interview with Stansberry Research, Soloway explained that he expected the price of the digital asset to fall between $12,000-$13,000 before the bear market ends. The market strategist points to the recent strength of the dollar, which is driving investors away from risk assets. “Every rally in the dollar, you’ll see the opposite happen in the Bitcoin chart,” Soloway said.
Bitcoin’s price had fallen by about 85% from its all-time high after the last bull market in 2017-2018. It was a similar case after the 2013-2014 bull market. So given bitcoin’s likelihood of sticking close to historical patterns, Soloway’s prediction of a bottom price of $12,000-$13,000 remains a viable forecast, as it would represent a drop of around 85% from bitcoin’s all-time high of $69,000.
Featured image from CNBC, chart from TradingView.com
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