Some people fear Bitcoin will never fully recover. The Bitcoin price has been dangling around USD 20,000 for some time and seems unable to recover. However, according to popular Twitter analyst Alan, there is nothing to worry about.
Business as usual
With a nice chart, Alan shows that Bitcoin’s current price action is no different from previous cycles. In Alan’s chart below, we see Bitcoin repeating a structure that we also saw during the 2014 and 2018 bear markets. The analyst uses the so-called Stochastic Oscillator for this, an indicator that shows when the price is overbought or oversold.
This indicator then gives values from 0 to 100, which Alan uses in this case to predict the bottom. If Alan’s analysis is correct, then it’s almost time for Bitcoin to get back on the elevator. His advice is to put your emotions to the side and not to be distracted by the intense price action in the short term.
Next bottom at $35,000
Incidentally, the Stochastic Oscillator not only predicts the current bottom of Bitcoin, but can also say something about future bottoms. Based on the data he now has at his disposal, Alan expects a bottom of $35,000 in the next cycle. For many people, this analysis comes at the fore, after Bitcoin lost about 75 percent from its all-time high in the past year.
Incidentally, there are also many analysts who say that we have not yet seen the bottom. After all, the US central bank has not yet finished raising interest rates. Only when they get inflation under control or for some other reason stop raising interest rates can we really look up again.