Bitcoin has been going through a bearish phase for the past months, hitting the lowest of $17,500. While many predictions are spilled out, the uncertainty over the bottom of bitcoin still prevails. The crypto experts continue to mull over the bottom of the top cryptocurrency, and top crypto analyst PlanB has shared a chart that accurately taps the bottom of the bitcoin.
Bitcoin goes through a bear and bull cycle that marks the lowest and highest points. The 200-week moving average has accurately captured the bottom-out moment of BTC in the past. This indicator is depicted with a color heatmap, using a percentage increase or decrease in BTC price to draw a line with different colors. Per the 200-week Moving average chart shared by PlanB, the Bitcoin price has slipped and closed below the 200WMA for the first tie in the history of Bitcoin.
As illustrated in the chart, whenever the BTC price turns dark blue and touches the 200WMA, the price has historically bounced back and rallied towards a new all-time high. Currently, the price has dipped below the 200WMA, which suggests that there is no way it can decline further. Moreover, it also indicates a looming bull run that the entire crypto market has been yearning for months.
Currently, Bitcoin is being traded at $21,500 in BTC/USDT pair in Binance, and the price has witnessed a significant upward movement after the release of June 2022 Inflation data. Although the CPI revealed a staggering 9% rise in inflation, the overall sentiment of the crypto market has turned positive. Except for high volatility in the shorter time frame, the price has shown a remarkable rebound and managed to breach the critical resistance of $20K.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.