Bitcoin Price To Retrace Below $20k Before Next Bull Run, Claims CryptoQuant Analyst

Bitcoin

The year 2022 has brought nothing but turmoil to the cryptocurrency sector, and among these were Bitcoin, as the price was pulled down as low as $17,700 on June 18. Since then, the King currency has formed a pump and dump pattern.

However, bitcoin has started its recovery phase and has never seen that low since then. At the moment, bitcoin is selling at $23,234 with a slight increase of 0.29% over the past 24 hours.

Nevertheless, Bitcoin’s price action could also turn the other way round as predicted by Tomas Hancar, CryptoQuant analyst. This is because analysts feel that Bitcoin is almost near the bottom.

According to the analyst, Bitcoin’s 20-day simple moving average (SMA) was neither bullish nor bearish over the past three months.

Hancar went on to say that the output profit margin for Long Term Holders (LTH) below the 20 SMA showed that the bottom signaled a one-third hit. He also says that Bitcoin was facing the same situation even during 2018/2019.

Although the analysis has given a green signal for buying, Hanker urged traders to proceed with caution. This comes as analysts believe the major currency is set to see a retracement below $20,000 before a bull run.

Bitcoin Price Below $20k?

Previously, another analytics firm, Glassnode reports, had revealed that the bear market is still yet to find its end.

The graph below shows the 20-day exponential moving average (EMA) of bitcoin in blue and yellow which indicates that the 50 EMA is at the same level. Therefore, the current market is neutral.

The 200 EMA (cyan) in the extended timespan displayed indications of an increase but has held its stance below the price of $22,500 per Bitcoin.  This suggests that Hanar’s prediction on the price of Bitcoin might come true.

At the time of publication, bitcoin is trading at $23,192 after a 0.11% drop in the past 24 hours.

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