The world’s largest cryptocurrency, Bitcoin, saw another severe plunge on Wednesday, June 15, falling below $20,000. Since then, the price of bitcoin has recovered, as has the price of other cryptos, as the Federal Reserve announces interest rate hikes along predicted lines.
Bitcoin is currently trading at $22,423, up 2% from its previous close, although it is still down 25% on the weekly charts. Bitcoin, according to crypto analyst Rekt Capital, may be entering a multi-month consolidation phase. According to the analysis,
“If BTC continues to hold the orange 200-week MA as support and the black 200-week EMA figures as resistance… $BTC could form an Accumulation Range here, just like in 2018 This would enable multi-month consolidation to even as far as December 2022.”
Furthermore, Rekt Capital has another intriguing idea for why the bear market may be months away. Rekt Capital expects the bottom in Q4 2022, based on the link between Bitcoin and the next halving cycle. He says in his letter:
“In 2015, BTC bottomed 547 days before the Halving. In 2018, $BTC bottomed 517 days before the Halving (discount March 2020 crash). If Bitcoin is going to bottom 517-547 days before the upcoming April 2024 Halving… Then the bottom will occur in Q4 this year.”