“No Emotions” – Bitcoin Calculation Gives $35K as Next BTC Price Macro Low
Bitcoin (BTC) is showing textbook macro bottoms in a “business as usual” bear market, data suggests.
In recent discoveries published on October 13, popular Twitter trader Alan revealed that BTC price action is mimicking previous cycles.
Trader on Stoch Data: “Don’t Get Shaken Out”
While some are concerned about the current state of the Bitcoin and crypto markets, on-chain indicators have long suggested that the 2022 bear market is as comfortable as in the past.
Looking at the BTC/USD one-month stochastic chart, Alan highlighted Bitcoin repeating a structure common to both the 2014 and 2018 bear markets.
Stochastic oscillators are classic tools for identifying price cycles and bullish and bearish interactions.
Bitcoin has proven to be no exception, with monthly low Stochastic readings perfectly matching bottom market prices, data from Cointelegraph Markets Pro and TradingView confirms.
Now the low levels are back – numbers that have only appeared three times before.
Not only does Stoch call for an imminent new macro BTC price low, but it can also be used to determine where Bitcoin may bottom in the future.
Deriving potential price points from existing data, Alan predicted that the next cycle’s low could be $35,000.
“Bitcoin forms flag above previous flag configuration. Yellow zone from Stochastic indicator shows (at least) second half of flag, where we are right now,” he commented alongside the chart.
“Next pole low = $35k. Quick bounce always follows a dip. No emotions, don’t get shaken out.”
A much needed silver lining
Phenomena such as Stoch behavior may well comfort traders who have seen Bitcoin fall by up to 75% from its all-time highs just eleven months ago.
Related: Price Analysis 10/14: SPX, DXY, BTC, ETH, BNB, XRP, ADA, SOL, DOGE, MATIC
With popular sources insisting that the bottom is not yet in, there appears to be little to be certain of while analyzing short-term BTC price action.
Optimists are few and far between, among them well-known analyst Philip Swift, who this week predicted to Cointelegraph that the 2022 bear market would end up being just that — done and dusted by the end of the year.
Others are less hopeful. Turning to financial asset values in general, Goldmoney senior analyst Alasdair Macleod this week told investors to forget the good times until the US central bank changes course on interest rate hikes.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
