A widely followed crypto analyst says he believes Bitcoin (BTC) is in a strong position to make a bear market bottom.
In a new video, crypto strategist Rager Tells He has 206,000 followers on Twitter Nothing is guaranteed in Bitcoin trading but he acknowledges that BTC appears to be forming a base above $19,000.
Many people wonder if this is the lowest level in the cycle. Maybe. we do not know. What we do know is that this has actually been a good long-term place for bitcoin to accrue…there are some nice price moves here out of the bigger hand.
What I’ve seen happen is that Bitcoin has played around that level around $19,000. And the reason it bounced so many times is that this was the daily and weekly close to an all-time high in 2017. So this is an important level. [that] Lots of people watching. We got vomiting from Three Arrows Capital and LUNA in June. We saw selling pressure quite high there but since then, we haven’t had such selling pressure.”
Rager is also taking a closer look at Bitcoin’s price action on September 9, saying that BTC’s reaction on that day supports the sentiment that crypto-king could break its cycle bottom.
“Could this be the bottom? It certainly could. I would love to see this kind of price action where it creeps people out. People tend to be wrong.”
Rager adds that Bitcoin is still closely correlated with the S&P 500 (SPX) index. He also says that Bitcoin will likely not print new cycle lows as long as SPX is above 3,896 points.
“If the traditional economy is doing well, if stocks are rebounding, there is really no reason to believe that bitcoin will reach $12,000 to $13,000 anytime soon.”
At the time of writing, Bitcoin is trading at $21,341 while the S&P 500 index closed the week at 4,067.35 points.
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