Bitcoin’s ongoing correction could be nearing its end and the market could experience a rally in the coming weeks, judging by pseudonymous cryptocurrency trader Teddy’s analysis.
According to their tweet, if history repeats itself, bitcoin’s bottom for this correction could be in the $61,000 range.
Bitcoin to Bottom at $61K
Teddy explained that every correction experienced in this bitcoin (BTC) bull run has landed and ended on the asset’s 21 weekly Exponential Moving Average (EMA). The EMA is an indicator that tracks the price of an asset over time, placing more significance on the most recent data points, which are considered more relevant than old data.
It is worth noting that the EMA responds more quickly to price changes than the Simple Moving Average, its fellow indicator, does.
Since BTC has a history of bouncing off its EMA, Teddy believes the leading cryptocurrency could bottom at $61,000 soon. At the time of writing, BTC was trading at $61,500 after plunging briefly below $61,000 to touch $60,900. It remains to be seen if Teddy’s predictions would come true.
More Dip Looms for BTC
While crypto community members expect a bullish reversal soon as they believe such is imminent, certain factors suggest the market may be in for more bloodbath.
Last week, CryptoQuant revealed a lack of bullish momentum in the crypto market, as seen in low stablecoin liquidity and weak BTC demand growth from large investors. Analysts at the crypto intelligence platform further disclosed that bitcoin demand from whales was growing at a monthly rate of 4.8%, traders were still decreasing their holdings, and stablecoin liquidity recorded its slowest pace since November 2023.
In addition, U.S. BTC and ETH investors, who are usually one of the major driving forces during rallies, have had weak demand growth. The U.S. spot Bitcoin exchange-traded fund (ETF) market, which reflects the intensity of this demand, has experienced consistent outflows since June 13.
CryptoPotato also reported that BTC could lose more of its value as miners have not capitulated yet. Bitcoin miners have continued to offload their assets as operational costs, hash rates, and pressures increase. Analysts expect weaker miners to “die” and hashrate to recover before BTC can resume its northward movement.
The post Did Bitcoin (BTC) Reach This Cycle’s Bottom at $61K? appeared first on CryptoPotato.
