Crypto Strategist Says FTX Collapse Suggests Bitcoin Nears Absolute Bear Market Bottom – Here’s Why
A popular analyst says the implosion of crypto exchange FTX could be the signal that marks the beginning of the end of Bitcoin’s (BTC) bear market.
Pseudonymous analyst Rekt tells his 329,900 Twitter followers that this isn’t the first time a prominent crypto exchange has imploded at the height of a bear market.
Rekt says that historically, the collapse of a crypto exchange suggests that the Bitcoin bear cycle is nearing its conclusion.
“In previous BTC cycles it was BitMEX, earlier it was Mt Gox.
Now FTX.
There is a pattern.
Exchange contagion has become a historical trend occurring near the absolute bottom of the BTC bear market.
Survive the capitulation and you will prosper in the bull market.”
The crypto strategist is also counting the days until the next Bitcoin halving, an event where rewards issued to BTC miners are halved. According to Rekt, also historical data suggests that BTC is approaching a bottom.
“Historically, BTC tends to fall 517-547 days before the next halving event.
The next halving is 536 days away.”
As for the size of the current cycle’s drawdown, the Rect highlights that BTC is close to its typical 80% bear market correction.
“Technically, a BTC bear market correction of -80% was bound to happen
One can argue that catalysts for [Ukraine-Russia] war, LUNA, Three Arrows Capital, FTX and others facilitated this current -78% retracement
Positive catalysts will also magically appear on the BTC bottom.”
As for his bottom line for Bitcoin, Rect says that he is looking at $13,900.
“If BTC turns the recently broken ~17,400 monthly support into new resistance,
then BTC may even decline towards the next immediate monthly support at ~$13,900.
Should that happen, BTC will have regressed -80% from the $69,000 highs.”
At the time of writing, Bitcoin is changing hands at $16,736, down almost 1.25% on the day.
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