Here’s where Bitcoin’s price could land after FTX implosion, according to Rekt Capital
A widely followed crypto analyst looks past this week’s FTX implosion to get a broader picture of the state of the current crypto markets.
Pseudonymous analyst Rekt Capital says to their 329,500 Twitter followers that better days are ahead for Bitcoin (BTC).
“A BTC Bull Market will happen one day.
But today is not that day.”
Rekt Capital too memories traders that after this bear market will be a bull market, and after that – another bear market.
“People think that BTC will never see another -80% Bear Market because it is now mainstream and too mature of an asset
Let’s not forget that there was a -53% correction just months ago
The average bear market is -84.5% deep
It is very likely that it will happen after this Bull Market.”
The analyst then points out that BTC has already fallen 78% since last October.
“Over a year later [since October 2021] and BTC has declined almost -78% so far.”
With that decline in mind, the Directorate has warns BTC should fall to $11,000, based on historical precedent.
“An average BTC Bear Market correction of -84.5% will see price drop to ~$11,000 in this cycle.”
Starting to direct the conversation to the recent FTX fallout, the trader says stock markets tend to collapse during these periods of volatility.
“In times of BTC capitulation, manual dollar cost averaging at lower prices can be challenging
Exchanges tend to crash during intense volatility and it can be difficult to buy BTC
Buy orders placed in advance can help you gain BTC exposure during extreme volatility.”
So, the pseudonymous analyst compare FTX to other fallen exchanges like BitMEX and Mt. Gox.
“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 BTC Bear Market bottom
Survive the capitulation and you will prosper in the bull market.”
Finally, the analyst concludes by reminding traders that bear markets lead to bull markets, which lead to new highs.
“In each cycle, BTC has made a new All-Time High
Current all-time High is ~$69,000
Current price is $16,800 with the possibility of additional cons
But the math is simple if you plan to make a good long-term return in the next Bull Market.”
BTC is trading at $16,863 at the time of writing.
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