A closely followed analyst believes that the worst of the Bitcoin (BTC) and crypto bear market is already behind us, presenting long-term bulls with golden opportunities.
The pseudonymous analyst known in the industry as Inmortal shares a blog post with his 184,700 Twitter followers that illustrates how markets tend to move like a pendulum.
According to the crypto strategist, a new market cycle takes shape when the pendulum is at the farthest from the center, where the force of gravity enables it to gather momentum to swing to the other side.
Looking at crypto’s current bear cycle, the analyst says the markets are now at a point where the pendulum has swung to the other extreme, indicating that the over one-year of selling is close to exhaustion.
“The pendulum no longer has momentum, all the sellers did their thing while the pendulum was in the middle. When the pendulum (market cycle) reaches an extreme, the perception of time here is different: price falls with less force, volatility is reduced and price is compressed. Think about the second when the pendulum is right at the extreme, when the momentum that drives it upwards is countered by the force of gravity.”
The analyst believes that on November 10th, exactly one year after Bitcoin printed its all-time high of around $69,000, the crypto markets were at the farthest point from the center.
“Now, you are experiencing one of the most magical moments of a market cycle, the farthest point from the center, the farthest point of the orbit. You are orbiting the point of maximum financial opportunity.”
On November 10th, Bitcoin printed a fresh bear market low of $15,674.
The analyst also shares a chart with his followers showing that Bitcoin is flashing a bullish divergence with the relative strength index (RSI) on the three-day chart.
Traders keep a close eye on bullish divergences during a downtrend as it indicates that sellers are losing momentum and that buyers are starting to control the market.
Inmortal also posits that Bitcoin’s drop below $16,000 could just be a deviation, suggesting that BTC will eventually recover support around $18,000.
“What if all this fear ends up as a deviation?”
At time of writing, BTC is trading hands for $16,812, flat on the day.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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