A popular crypto trader says that Bitcoin is approaching a price zone that could offer a highly favorable risk-reward ratio for long-term BTC investors.
Pseudonymous crypto strategist Rekt Capital tells his 320,900 Twitter followers that this cycle might be different for BTC as the king crypto continues to trade below the 200-week moving average (MA), an indicator that has previously marked the bottom for the leading digital asset.
“Historically, the 200-week MA has figured as a bottom indicator for BTC. In this cycle, things may be a bit different. Instead of BTC bottoming at the 200-week MA, it may form a macro range below it. Anything below the 200-week MA will likely represent peak opportunity.”
According to the crypto strategist, Bitcoin will likely face seller exhaustion as it trades below the 200-week moving average, which Rekt Capital says could eventually put long-term investors in a position to pick up BTC at a price area that offers maximum rewards.
“Across its entire history, BTC has always downside-deviated below the 200-week MA, but this time? The downside-deviation hasn’t had a strong/quick recovery back above the 200-week MA. The BTC recovery may take longer, but it’s still a downside deviation nonetheless.
BTC is reaching historic levels of overselling. At some point, this extreme overselling will coincide with the point of maximum financial opportunity.”
Rekt Capital also says that while Bitcoin currently remains in a strong downtrend, it will eventually reach a conclusion, which would open the door for a new bull cycle.
“BTC may still very well be in the ‘Downtrend Acceleration’ phase of its correction but this phase will precede the ‘Multi-Month Consolidation’ phase, which will precede the ‘New Macro Uptrend’ phase.”
At time of writing, Bitcoin is trading for $19,199.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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