A preferred crypto dealer says that Bitcoin is approaching a worth zone that might supply a extremely favorable risk-reward ratio for long-term BTC traders.
Pseudonymous crypto strategist Rekt Capital tells his 320,900 Twitter followers that this cycle may be totally different for BTC because the king crypto continues to commerce under the 200-week transferring common (MA), an indicator that has beforehand marked the underside for the main digital asset.
“Traditionally, the 200-week MA has figured as a backside indicator for BTC. On this cycle, issues could also be a bit totally different. As a substitute of BTC bottoming on the 200-week MA, it might type a macro vary under it. Something under the 200-week MA will probably symbolize peak alternative.”
In line with the crypto strategist, Bitcoin will probably face vendor exhaustion because it trades under the 200-week transferring common, which Rekt Capital says may ultimately put long-term traders ready to choose up BTC at a worth space that gives most rewards.
“Throughout its complete historical past, BTC has all the time downside-deviated under the 200-week MA, however this time? The downside-deviation hasn’t had a powerful/fast restoration again above the 200-week MA. The BTC restoration might take longer, but it surely’s nonetheless a draw back deviation nonetheless.
BTC is reaching historic ranges of overselling. In some unspecified time in the future, this excessive overselling will coincide with the purpose of most monetary alternative.”
Rekt Capital additionally says that whereas Bitcoin at the moment stays in a powerful downtrend, it can ultimately attain a conclusion, which might open the door for a brand new bull cycle.
“BTC should very effectively be within the ‘Downtrend Acceleration’ part of its correction however this part will precede the ‘Multi-Month Consolidation’ part, which is able to precede the ‘New Macro Uptrend’ part.”
At time of writing, Bitcoin is buying and selling for $19,199.
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