A widely followed analyst, who says the crypto market will bottom out in 2022, says that Bitcoin and two altcoins are now bottoming out. Glassnode co-founder Yann Allemann also states that a metric for Bitcoin is promising.
“ No more bottoms for Bitcoin, ETH and SOL!”
Former ARK Invest executive Chris Burniske says it’s unlikely that BTC, ETH and SOL will make new lows this calendar year. Meanwhile, BTC, ETH, SOL, and the rest of the crypto market have all been bearish over the past week. In the past week, Bitcoin has lost 12%, ETH 10.4% and SOL 15.7%. From this, the analyst warns of “bottom vultures” or those who expect lower prices but still have no intention of continuing for long. In this context, the analyst makes the following statement:
While 2019 is a useful context, I don’t think BTC, ETH and SOL will make new lows in ’23. I think 2022 was the lowest level. That doesn’t mean we won’t take a hit. But if we’re right, it means that the long-term uptrend will continue into ’24 and ’25. Be wary of bottom vultures that will never buy.
The market needs a catalyst, this could be it!
According to Burniske, a partner at venture capital firm Placeholder, decentralized finance (DeFi) has helped pull crypto out of the last bear market. The analyst says a similar catalyst would need to get Bitcoin and altcoins out of the current bear cycle.
cryptocoin.com Friend.Tech (FT), a new web3 social app built on Base on the Coinbase-backed Ethereum layer-2 blockchain, has blown the market. The analyst cites this as an example that will trigger the next bull cycle. In this regard, Burniske says:
DeFi games were built to pull us out of the depths of the last bear market. Social games like FT will also act as a catalyst in this cycle. Monkeys always monkey first! Then comes the rest of the community as follower apps clean up the experience.
Oversold indicators for Bitcoin are promising!
The leading cryptocurrency, Bitcoin, experienced a notable 10% drop last week. However, it seems to hint at a potential resurgence later on. The famous Glassnode co-founder Yann Allemann shared his views on the latest situation. According to Allemann, BTC is showing some early signs of recovery as it climbs from the last support level of $24.8k.
According to CoinGecko data, BTC is currently trading around $26,117.20. There are oversold indicators in the BTC market, which will be an opportunity for short-term gains. However, all is not well with Bitcoin enthusiasts. Allemann’s analysis points to a stabilizing risk signal at the 100 mark. This plateau is a potential sign of consolidation from a technical standpoint. Simply put, there needs to be a significant change in market demand dynamics. Otherwise, it is possible for Bitcoin price to move sideways in this range until that happens. For traders and investors, this essentially means keeping their strategies adaptable and ensuring they are prepared for both bullish and possible stagnant phases.
