Bitcoin [BTC] hit its 2022 low on June 18 when it broke below $17,700. Since then, the number one cryptocurrency has gone up and down the charts. However, BTC only skyrocketed and no longer reached such levels, spending most of its days above $20,000.
Now, there could be another side to the BTC price movement. According to CryptoQuant analyst Tomáš Hančar, BTC is close to hit rock bottom – he said it’s almost a third.
How did it happen?
Based on Hančar’s analysis, the 20-day simple moving average (SMA) has spent three months at neutral levels.
Hančar went on to point out that the long-term holders (LTH) production profit ratio in the 20 SMA revealed that the bottom suggested a one-third reach. He mentioned that the situation was likely to turn around in the bear-bull market of 2018/2019. Hancar said,
“As for the indicator’s 20-day MA smoothing line in technical terms, between July 10th and 14th we saw what appears to be a bounce off the actual 2020 LTH SOPR low, coincidentally not too much far from the 0.49 level, which represented the lows of the 2015 and 2018/2019 cyclical lows”
While the analysis might have suggested investors may start buying, Hančar stressed the need to be cautious. He noted that it was possible to see another dip below $20,000 before a guaranteed rise above.
Who else agrees?
Earlier, Glassnode suggested that the bear market was not entirely over. So are the other indicators synchronized with Hančar’s projections?
According to the BTC chart, the current market was still neutral as the 20-day exponential moving average (EMA) in blue and 50 EMA (yellow) were almost at the same level. With this trend, short-term traders may want to watch where the next BTC is moving.
Looking further ahead, the 200 EMA (cyan) showed signs of an uptrend and only held a position below the BTC price of $22,500. This position may mean that Hančar’s BTC price prediction could be a reality.
At press time, BTC was trading at 23,176 according to CoinMarketCap. With a 1.09% rise, buying more BTC could be risky as long-term investors’ preference to wait and watch could pay off.