‘Bottom Is In’ for Bitcoin, According to Analysts
After a brief rally, crypto has slid back into the red over the past 7 days. Like other financial markets, it has fallen victim to the unstable Russia-Ukraine border situation. However, as Bitcoin struggles to climb back over the $40,000 level, analysts suggest that there may be cause for optimism.
Indeed, crypto enthusiasts have been poring over BTC charts in search of a likely bottom. Analyst and pseudonymous Twitter user Rekt Capital has pointed to $38,000 as a key support and resistance level, having held since January 2021. Suggesting that BTC price may be bottoming out, Rekt Capital said, “Whenever BTC would break beyond the red $38,000 resistance area… It would pull back into this region for a retest attempt before further upside…Retest is now in progress.”
Moreover, numerous analysts are keen to keep the current crypto dip in perspective. Crypto analyst PlanC tweeted that when considered in the context of Bitcoin’s price history, this price drop isn’t necessarily a bearish signal. “Basically, unless we break below $30,000 and remain below $30,000 for weeks, I lean bullish,” he wrote. “And the $28,000–$30,000 level has acted as very strong support for a year now.”
It’s possible that crypto, having touched a low point of $1.4 trillion in market cap this week, could be finding firm footing. But even if traders remain optimistic, the question remains as to how long prices will take to reclaim lost ground.