A widely followed crypto analyst says he believes Bitcoin (BTC) is in a solid position to carve a bear market bottom.
In a new video, pseudonymous crypto strategist Rager tells his 206,000 Twitter followers that nothing’s guaranteed in trading Bitcoin but he does acknowledge that BTC appears to be forming a base above $19,000.
“A lot of people are asking if this is the low of the cycle. It could possibly be. We don’t know. What we do know is that this is actually been a pretty good place as far as a spot long term to accumulate Bitcoin… There’s some pretty brilliant price action here as far as from the bigger hand.
What you saw happen was Bitcoin had played around this level around $19,000. And the reason that it’s bounced so many times is because this was the daily and weekly close of the all-time high back in 2017. So this is an important level [that] a lot of people are watching. We did get the puke from the Three Arrows Capital and the LUNA drama back in June. We saw the sell pressure pretty high there but ever since then, we’re not having sell pressure like that.”
Rager also takes a closer look at Bitcoin’s price action on September 9th, saying that BTC’s reaction that day supports the sentiment that the king crypto could be carving its cycle bottom.
“Could that be the bottom? It certainly could. I do like to see that type of price action where it does pull people offside. People tend to be wrong.”
Rager adds that Bitcoin is still tightly correlated with the S&P 500 (SPX). He also says that Bitcoin will likely not print new cycle lows as long as the SPX is above 3,896 points.
“If the traditional economy is doing pretty well, if equities is bouncing, there’s no reason to really think that Bitcoin is going to nuke to $12,000 to $13,000 anytime soon.”
At time of writing, Bitcoin is changing hands for $21,341 while the S&P 500 closed the week at 4,067.35 points.