Bitcoin (BTC) is showing signs of a classic macro bottom in a “business as usual” bear market, multiple data suggests.
In the new finds published On Oct. 13, popular Twitter trader Alan revealed that BTC price action is closely mimicking previous cycles.
Stochastic Data Trader: “Don’t Let It Get To You”
Although some are concerned about the current state of the Bitcoin and cryptocurrency markets, on-chain indicators have long suggested that the 2022 bear market is comfortingly similar to previous ones.
Looking at the one-month stochastic chart for the BTC/USD pair, Alan noted that Bitcoin repeats a structure common to the 2014 and 2018 bear markets.
Stochastic oscillators are classic tools for identifying price cycles and bullish and bearish interaction.
Bitcoin has proven to be no exception, with low monthly stochastic readings perfectly matching bear market price bottoms, data from Cointelegraph Markets Pro and TradingView confirm.
Now those lows are back, numbers that have only come up three times before.
The stochastic indicator not only heralds a new and imminent BTC price low, but can also be used to determine where Bitcoin might bottom in the future.
Inferring possible price points from existing data, Alan predicted that the next cycle low could be $35,000.
“Bitcoin forms a flag above the previous flag setup. The yellow zone of the stochastic indicator shows (at least) the second half of the flag, where we are right now,” he commented alongside the chart.
“Next pole low = $35k. Quick rebound always follows a dip. No emotion, don’t be shaken out.”
A much needed silver lining
Phenomena such as the behavior of the stochastic indicator can comfort traders who have seen Bitcoin drop as much as 75% from all-time highs just eleven months ago.
With popular sources insisting the bottom is yet to be touched, there seems to be little to rely on when analyzing BTC’s short-term price action.
Optimists are few, including well-known analyst Philip Swift, who this week forecast for Cointelegraph that the 2022 bear market should end precisely like this: over and done with by the end of the year.
Others are less hopeful. As for the value of financial assets in general, Goldmoney principal analyst Alasdair Macleod told investors this week to forget about the good times until the US Federal Reserve changed course on rate hikes. of interest.
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