A popular market analyst recognized for his S2F model, PlanB, noted that recent market moves and Bitcoin’s flow between buyers and sellers could be pointing to a possible recovery after the effects of the FTX exchange crash.
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Has the Bitcoin crash bottomed?
So says PlanB in an analysis compiled by Zycrypto.com, in which they pointed out that the plunge seen in Bitcoin prices and its arrival at $15,890 per unit, hand in hand with the fall that took Ethereum below $1,120 in the last few hours is a clear indicator of a wave of sales in the market. However, for the analyst, that does not necessarily represent a bad sign.
In the specific case of Bitcoin, PlanB’s thesis pointed out that this could represent that the main cryptocurrency is approaching what he defines as “bottoming out”, so the digital currency could be close to a major recovery after the exit of less experienced investors overwhelmed by the fall in prices.
In this regard, PlanB commented: “Most of the BTC sold this month will be bought at a higher level… The historically weaker hands… are gone, this is good for Bitcoin.”
The aforementioned was accompanied by another thought, in which the analyst points out that current levels are a good opportunity for holders and more experienced buyers, who could make reasonable purchases now, setting the stage for the next bull run in the case of Bitcoin.
As PlanB’s S2F model indicates, the current state poses a possible deviation for Bitcoin’s real price, which is even more pronounced than seen at other times in its history. This leads the analyst to believe that the next bull run could take BTC above $78,000 at best.
Period of great uncertainty in the crypto market
The comments made by PlanB contrast sharply with other readings made by various analysts, who at the moment are leaning towards a much more bearish reading thinking in the short term.
One of these is CryptoQuant analyst Venture Founder, who estimates that Bitcoin still has more room to fall and settle below $14,300, on the grounds that there is no perceived drop in selling pressure at present:
In the 2018 cycle, Bitcoin bottomed at a 30% discount to the realized price. The closest discount in this cycle has been 16%; a 30% discount to the price now could take BTC to $14,300, and we’re not that far from that mark.
While readings remain divided, for the moment what can be seen is that the Bitcoin price is trading at around $15,753 per unit, a figure that represents a 4% drop in the last 24 hours. Alongside this, trading volume has intensified throughout the day, capitalizing on an 88% increase and moving $36.973 million across the major exchanges.
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First published in DiarioBitcoin, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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