Bitcoin (BTC) played the waiting game with traders on June 28 as Wall Street opened with a flat performance.
Bollinger Pinpoints “Logical Place” for Bitcoin Bottom
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair hovering around $21,000 on Bitstamp, refusing to commit to a firm trend.
Nevertheless, the pair avoided further signs of weakness, leading Cointelegraph contributor Michaël van de Poppe to believe that a attack on major levels – particularly the 200-week moving average near $22,400 – could be next.
#bitcoin bounced upwards after sweeping the lows at $20.6K.
Honestly, I was expecting a further correction towards $20.3K.
Still long on my positions on $FTM, $ADA, $AVAX & $ETHas I’m still assuming we’ll see continuation towards $22.4K and possibly $23.1K. pic.twitter.com/dbwYQiuZZL
— Michael van de Poppe (@CryptoMichNL) June 28, 2022
#Bitcoin bounced higher after sweeping the lows at $20,600.
Honestly, I was expecting a further correction towards $20,300.
I am still long $FTM, $ADA, $AVAX and $ETH as I am still assuming we are going to see continuation towards $22,400 and possibly $23,100
“In the past, Bitcoin has been an opportunity below its realized price, that is, the aggregate cost basis of all coins on offer. The realized price is currently around USD 22,500,” added the popular Game of Trades trading account.
Although few expected a clear uptrend to emerge, the long-term outlook also placed importance on current price levels.
Among them was John Bollinger, creator of the Bollinger Bands volatility indicator, who in a new opinion on the BTC/USD pair signaled the culmination of a trend that has been years in the making.
The next move, he suggested, could well be higher after a “perfect” double top pattern in Bitcoin in 2021.
Picture perfect double (M-type) top in BTCUSD on the monthly chart complete with confirmation by BandWidth and %b leads to a tag of the lower Bollinger Band. No sign of one yet, but this would be a logical place to put in a bottom.https://t.co/KsDyQsCO1F
— John Bollinger (@bbands) June 27, 2022
Imagine the perfect double high (type M) in BTCUSD on the full monthly chart with BandWidth confirmation and %b leading to a lower Bollinger Band label. No sign of one yet, but this would be a logical place to set up a floor.
Research: “Almost All” Bitcoin Metrics Are At All-Time Lows
On-chain analytics firm Glassnode has conducted a new analysis on whether Bitcoin has bottomed out at the start of the week.
In his latest weekly newsletter, “The Week On-Chain,” Glassnode dissected a number of on-chain metrics at various stages of a fund’s formation.
However, in an unprecedented macroeconomic environment, nothing was certain.
“In the current macroeconomic framework, all models and historical precedents are likely to be put to the test,” he concludes.
“Based on the current positioning of Bitcoin prices relative to all-time low models, the market is already at an extremely unlikely level, with only 0.2% of trading days under similar circumstances.”
He noted that those who had bought BTC in 2020 and 2021 had provided the driving force for the recent selloff.
“Nearly all of Bitcoin’s macro indicators, from technical to on-chain, are at record lows, coinciding with the formation of bear market bottoms in previous cycles. Many are trading at levels with just a single percentage digit of history earlier at similar levels”added the bulletin.
Sentiment was no different on the day, with the Crypto Fear & Greed Index at 10/100 or “extreme fear”, which also constitutes a classic investment level in past bear markets.
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