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Analysts Predicts Bitcoin Will Plunge Shortly But Suggest Buy Bitcoin

It is no secret that many cryptos have been experiencing a price plunge. As of June 18, the price of the world’s largest digital currency, Bitcoin, fell to about $17,622. This data was taken from Binance. Since then, there have been several conversations as to whether or not that price will be the lowest for the asset.

A digital currency analyst from CryptoQuant has revealed the possible price of Bitcoin in the nearest future. CryptoQuant is a recognized digital currency resource platform. According to the analyst, the $17,622 price mark may not be the lowest Bitcoin will see. However, this assumption is not very solid given the level it is at the moment.

Crypto Winter Overview

Many traders and investors are still doubting if there will be a positive change soon. Several pieces of information state the possibility that Bitcoin will still hit a price mark lower than $20K.

The scenario has made several digital currency holders sell off their assets. Also, before now, certain major crypto firms have taken some hard decisions due to the bearish turn of the market. A notable example of these crypto firms is Vauld.

Source: CryptoQuant

According to reports, the crypto lending platform had to suspend withdrawals and reduce its headcount. This was revealed on July 4.

Probable BTC Price

Going further, a cryptocurrency resource platform analyst, Tomáš Hančar, has explained the possibility of his prediction. According to him, the LTH SORP 20-day chart SMA is projecting a 1/3rd chance of Bitcoin hitting that bottom price mark.

The explanation of the indicator (SMA) presented above is an acronym for 20-day chart Simple Moving Average. This represents the LTH SOPR (Long-Term Holders’ Spent Output Profit Ratio.

According to the data, the ratio derived has been below the impartial level worth of “one” for up to three months. Drawing from the analyst prediction, this is 1/3rd the level that explains a potential bottoming process.

The analyst further explained the function of the 20-day idea of the indicator he used. He cited that the idea of the 20-day indicator was for transferring appropriate standard lines.

Buying Bitcoin Is Now, Says Tomáš Hančar

After this analysis, Tomáš Hančar concluded that buying BTC should commence now. This is because there will be a strong bounce-off in a short while. But, there is a drawback to be aware of, he added. That is the probability that the digital token will drop below the $20K price mark.

Bitcoin price sustains a bullish trend Source: BTCUSDT Tradingview

According to the crypto market watch data, 47 days have passed since the last new low of Bitcoin price.

Considering this fact, the analyst suggested traders furthermore; he cited that it will be necessary for traders to deploy a potential breakout option.

Featured image from Pexels – Chart from TradingView.com

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Whales Accumulate Through The Dip As Bitcoin Repositions To $40K

Volatility remains one of the characteristics of Bitcoin that could easily change the holding stance of investors. To some, a downward movement will mark their period of massive accumulation and expansion of their holdings. On the other hand, some will suffer considerable losses through a dip.

Bitcoin has been on a dipping move as it gets to its monthly low of $39,000 within some days of hitting the $40,000 mark. Though many people had expected that the BTC price would show some bearish trend for a few days, the events have proved the contrary.

Bitcoin has gradually taken a downward tour by going into a 37K – 40K region. This recent dip has given some whales the opportunity of making massive purchases of the token.

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A CryptoQuant technical analyst, Minkyu Woo, stated that a significant coin volume was moved out through spot exchanges during the Bitcoin sell-off.

He mentioned the possibility of whales buying a considerable amount of BTC since the outflow size could only proceed through the check for spot exchanges’ top 10 BTC outflows.

Analyst Explains The Entire Bitcoin Price Movement

According to Woo, the 37K – 40K mark stands as the BTC price range in the crypto’s critical accumulating phase. This move has long begun in March 2022. Also, Woo advised investors to keep their holdings or purchase more of the dips if possible.

The price of BTC has surged sharply | Source: BTCUSD on TradingView

In the past, where there have been cases of spiked outflow volume, a notable amount of BTC has gone out via exchanges. However, a sudden reversal in the market’s sell-off came as the crypto price climbed up.

Recent events have followed a similar pattern as Bitcoin regained all its losses by moving to the $41K region.

Moreover, Woo explained that Bitcoin has gotten below the 200 MA support from the 2020 fourth quarter. This means that BTC would have more accumulation of smart money.

In his chart, Woo indicated the dipping pattern for BTC into the bottom zone and its subsequent spike and buying interest.

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Just like Bitcoin has displayed its bearish trend, the action reflects the general status of the broader crypto market. Besides Bitcoin, Ethereum has indicated significant drops by moving below its $3K level. Also, other prominent altcoins are not left out in the southward movement of price.

Fortunately, the entire crypto marketplace seems to be getting higher in an upward recovery movement starting from today. Ethereum has moved back to its $3,000 region, and BNB is up within the $400 level. Other altcoins are following closing through the recovery trend.

Featured image from Pexels, charts from TradingView.com