Bitcoin (BTC) and all our favorite coins and tokens have once again proven to us that they can get back on their feet after a massive decline. The King of Crypto is currently testing a new resistance level of $6,500 after reaching a recent low of $6,200 on the 8th of September. Looking at Ethereum (ETH), the digital asset had already been declared dead by a few analysts as it was trading at $170 on the 12th of September. ETH is currently trading at $206 and up 13.28% in the last 24 hours.
Did Bitcoin (BTC) Reach Bottom?
As earlier stated, Bitcoin is the King of Crypto and its movement in the markets is a clear indicator of the general direction of the entire ecosystem. The recent low of $6,200 has been hoped by many as being the last low of the year as we gear up for the highly anticipated bull market that will be jump started by the Holiday season that is only weeks away.
Billionaire investor and ex-hedge fund manager, Michael Novogratz, believes that the crypto market has bottomed out with the recent lows witnessed only yesterday. In a tweet only hours ago, he stated the following:
This is the BGCI chart…I think we put in a low yesterday. retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble… markets like to retrace to the breakout..we retraced the whole of the bubble. #callingabottom
The full tweet can be found below.
This is the BGCI chart…I think we put in a low yesterday. retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble… markets like to retrace to the breakout..we retraced the whole of the bubble. #callingabottompic.twitter.com/EasTBYgjSj
On the 9th of September, veteran Bitcoin analyst, Willy Woo, predicted that it might get worse before it gets better for Bitcoin. He made this comments via a tweet that stated the following:
Prep for it. Our most probable path is to break below 5800 support and some free fall. Whether we bounce for another oscillation, or fall through here is TBD. The next support is 4900, which should slow the drop, but 4400 is the next real line of defence. Completes the 3rd cat.
Willy Woo has had success in the past predicting the price of Bitcoin. Back in June, he predicted that BTC would touch levels of between $5,500 to $5,700 before any signs of recovery would be seen. Sure enough, BTC dropped to a new low of $5,800 on the 29th of June.
In conclusion, as with all breakouts of Bitcoin in the markets, we should be cautious in the markets for the past has proven that sometimes BTC cannot hold new levels. The last decline in the markets was caused by fake news and with the SEC verdict on the CBOE sponsored Bitcoin ETF due on the 30th of September, we might experience an over-reaction in the markets on or before that day.
Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.