Renowned analysts suggest that Bitcoin has bottomed out

Bitcoin price has dipped to its lowest level since July 2021 amidst the bloodbath in cryptocurrencies.
Whale transactions in Bitcoin and Ethereum have hit multi-year highs, implying a “bottoming out” of BTC and ETH.
A leading technical analyst believes Bitcoin has bottomed out and remains bullish at the current price level.

Bitcoin price may have reached a bottom, according to leading crypto analysts after the asset plummeted to a new low of $28,461. Analysts remain stubbornly bullish on Bitcoin price recovering despite fears of mass capitulation.

Bitcoin price has bottomed, say these analysts

Bitcoin price recently nosedived and hit $28,461, its lowest level since July 2021. This happened as the cryptocurrency ecosystem was hit by a massive bloodbath that has wiped out $310 billion in market capitalization over the past week.

Proponents have identified three key reasons for the Bitcoin price drop and bearish sentiment among crypto investors. The first, is the depegging and crash of stablecoins like Terra USD(UST), USD Tether (USDT), DAI and Binance USD (BUSD) has fueled a negative sentiment among crypto investors.

The second, is that amidst fears of rising inflation and the monetary policy tightening of the Federal Reserve, investors are pulling capital out of cryptocurrencies. A further factor is Bitcoin’s high correlation with stocks and S&P 500 which have also experienced a price drop.

@TheRealPlanC, a leading on-chain analyst, has evaluated the Bitcoin price trend and proposed the “Confluence Floor Model.” The floor price of the model is $27,688.

@TheRealPlanC’s model was first published on March 8, 2022. The model attempts to present the worst-case scenario for Bitcoin price. The analyst takes three independent floor models into account and presents an accurate historical analysis. Bitcoin price has touched the model’s chart a mere three times throughout history.

So everyone understand how the model works. #Bitcoin

In order for it to break the price would have to have a daily close below the floor model. #Crypto

This has never happened in the history of #BTC, if it does than the model is no longer useful, very simple. https://t.co/xMfmbJ6u8e
— Plan©️ (@TheRealPlanC) May 12, 2022

These three instances are considered “best buy” scenarios for Bitcoin. A daily close below the floor of $27,688 would invalidate the model. The analyst has therefore called the Bitcoin bottom at the current price level.

@decodejar, an onchain analyst and trader, believes that BTC's wave four is potentially complete based on the Bitcoin Elliott Wave Theory. The theory consists of five price swings derived from technical analysis. Waves one, three and five are upward swings and wave two and four are pullbacks.

The completion of wave four is confirmed since the parallel channel holds. The high in wave five, or Bitcoin price after recovery, is expected to exceed $44,000, based on the analyst’s chart.

#BITCOIN FULL COUNT.

WAVE 4 POTENTIALLY COMPLETE.

AS LONG AS THIS CHANNEL REMAINS INTACT, I AM COMFORTABLY BULLISH AT THESE LEVELS. pic.twitter.com/uaVzm6B7J5
— Steve ⚡ (@decodejar) May 12, 2022

Experts that argue Bitcoin has bottomed out are, therefore, bullish on a complete recovery in the asset’s price.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.