With the debate raging over if Bitcoin (BTC) truly set a bottom at $6,700, an analyst recently tried to set the record straight, issuing the tweet below after Saturday’s candle close.
In it, a popular cryptocurrency analyst that goes by “Salsa” noted that Bitcoin and Ethereum’s three-day charts printed the same extremely bullish candle pattern: a swing failure pattern “below major liquidity pools on the three-day time frame.” He noted that this contributes to the idea that BTC “bottomed on a macro scale.”
https://twitter.com/SalsaTekila/status/1198408029584142342
Also, Dave the Wave, an analyst who called the drop to $6,700 months and months ago, said that there is a confluence of technical factors that suggest a long-term bottom was put in at $6,700. This confluence includes but isn’t limited to the three-year moving average—which currently sits in the low-$6,000s—is where BTC historically has found support in early bull markets and the fact that the cryptocurrency has bounced off the 0.5 Fibonacci Retracement level of the $3,200 to $13,800 range, implying bottoming price action.
That’s not to mention that within the coming month, the 50-week and 100-week moving averages will see an extremely bullish “golden cross” in the coming one or two weeks, with the short-term average crossing above the long-term one. This implies that bulls have control of the market in the long term, not bears.
Indeed, this specific golden cross seemingly kickstarted the parabolic bull run that brought Bitcoin from $1,000 to $20,000 last cycle.
Related Reading: Echo Bubble Narrative Grows Stronger as Bitcoin Struggles to Find Support
You Sure Bitcoin is Ready to Return Higher?
Not everyone convinced $6,800 will be the worst for Bitcoin though. An analyst going by “Mac” said on Friday that $5,100 will be the ultimate bottom for this bearish move.
Firstly, he noted that the trend remains bearish, despite the support found at $6,800 and the bounce. The analyst backed this point by looking to BitMEX’s open interest, which is “keeping stable and increasing,” implying that few shorts are taking profit and buyers continue to open longs.
Mac continued that Bitcoin loss the June volume-weighted average price level, and has entered a “void” in the cryptocurrency markets that could see BTC easily continue into the low-$6,000s.
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