Bear Triangle – Bitcoin (BTC) price sheds $20,000, reminding markets that the cryptocurrency may still not have bottomed out for this cycle.
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Bitcoin Price Below $20,000: And That Would Just Be A Test!
Bitcoin price drops to around $19,290 on Bitfinex, today, July 12, 2022. Cryptocurrency trades at $19,487 at the time of writing this article. Its price is currently recording a daily loss of 3.63%.
Analyst il Capo of Crypto, who had urged traders to be cautious in the face of a bullish trap last week drives the point home by highlighting the erasure of recent gains.
He issues an even more bearish outlook, indicating that today’s drop below $20,000, would be one ” dump test before the release of the Consumer Price Index data. The markets should then prepare for the “big” dump.
Large triangle will become small: a bottom at $12,000
Technical analyst Aditya Siddhartha Roy’s predictions are as bullish as Il Capo of Crypto’s.
The analyst shared a chart that shows a succession of triangle configurationssince the “beginning of the downtrend,” after Bitcoin price hit its current all-time high near $69,000.
These triangles get smaller as you go. Aditya Siddhartha Roy believes that the price of Bitcoin could break out of the current triangle from below, to reach a possible floor price at the level of the 400-week simple moving average, in the $12,000-$13,000 area.
Bitcoin price floor: sooner than expected?
If Bitcoin’s current drop below $20,000 allows its price to bottom for this cycle, then the bears would be ahead of their agenda, referring to historical data.
Indeed, the trader Rekt Capital has reminded that Bitcoin “bottomed out 547 days before the halving” in 2015 and 517 days before the halving in 2018.
If the bottom of this cycle was reached between the 517th and the 547th day before the next halving in April 2024, Bitcoin would then hit its floor price, “ in the fourth quarter of this year “.
However, the bears could deviate from this pattern, given an exceptional macro environment, with the euro even reaching parity with the dollar.
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