A widely followed crypto analyst says he’s identified when the Bitcoin (BTC) bear market bottom will fully form.
In a new interview with Real Vision, pseudonymous trader Rekt Capital says we need to see a generational bottom form before BTC finds a bottom.
A generational bottom occurs when asset prices drop so drastically that they are extremely unlikely to ever be so low again, thus happening “once in a generation.” He also says we need to see a few months of sideways consolidation.
“We still need to see that generational bottom form after downtrend acceleration and we also need to see that sideways period of sideways consolidation for multiple months…
It could take a long time for not only both of these phases to complete, of course, the bottoming phase, the acceleration and the downtrend take not too much time at all but it’s the consolidation that takes the longest.
So after that bottoming out, we’re gonna see multiple months of sideways price action until we finally reach [an area of resistance] for a breakout into a new macro uptrend.”
Rekt Capital goes on to say he believes the crypto bear market bottom will form sometime during Q4 of this year due to its halving cycle.
“The greatest acceleration in price action occurs after halving. The next halving is going to take place in April 2024…
At least 500 days or so need to take place for that bottom prior to the halving to occur. And if this repeats for this cycle, then that would mean we’d have to wait until quarter four for the bear market bottom to fully form.”
The strategist also tells his 320,000 Twitter followers that BTC “is reaching historic levels of selling.”
“At some point, this extreme overselling will coincide with the point of maximum financial opportunity.”
Bitcoin is changing hands for $19,369 at time of writing, a 1% increase on the day.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/dTosh/Roman3dArt