February 7, 2023

Bitcoin [BTC] It reached its lowest level in 2022 on June 18 when it fell below $17,700. Since then, the number one cryptocurrency has skyrocketed to the top and bottom of the charts. However, BTC rose stronger and never reached these levels again, spending most of its days above $20,000.

Now, there could be another aspect to the Bitcoin price movement. According to CryptoQuant Analyst Tomáš Hančar, BTC is close To hit the bottom — say about a third then.

How did this happen?

Based on Hančar’s analysis, the 20-day simple moving average (SMA) spent three months at neutral levels.

Hančar continued noting that the LTH ratio within the 20 SMA revealed that the bottom points to a third. He noted that the situation was likely to be a bullish 2018/2019 transition. Hanir said:

“In terms of the indicator’s 20-day moving average smoothing line from a technical point of view, between July 10-14 we saw what appears to be a bounce off the actual 2020 LTH SOPR low, which coincidentally is not too far from the 0.49 level, which represented The lowest levels in both the 2015 and 2018/2019 cyclical lows

While the analysis may indicate that investors can start buying, Hančar emphasized the need to be careful. He noted that we could have seen another drop below $20,000 before a guaranteed rally above it.

Who agrees?

Earlier, Glassnode I suggested That the bear market is not quite finished. So, are the other indicators in sync with Honar’s forecast?

According to the BTC chart, the current market remains neutral with the 20-day exponential moving average (EMA) in blue and the 50 EMA (yellow) almost at the same level. With this trend, short-term traders may want to note where BTC moves next.

Source: TradingView

On the longer time frame, the 200 EMA (cyan) is showing signs of a bullish trend and only holds a position below the $22,500 BTC price. This situation could mean that Hančar’s prediction of BTC price could come true.

At press time, BTC is trading at 23,176 per CoinMarketCap. With a gain of 1.09%, buying more bitcoin could be risky, as investors’ long-term preference to wait and watch may pay off.

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