The entire crypto market has witnessed a sharp fall following unexpected events which caused catastrophic waves across the industry. Bitcoin has dropped below its two-year low of $18K and continues to remain in an uncertain price range.
Moreover, concerns regarding inflation and the results of the midterm elections have brought a mixed situation for the market’s future movement.
As Bitcoin investors dump their BTC holdings and exit the market amid an alarming trend, BTC continues to trade in a crucial price range to test long-term holders’ patience.
A Bitcoin Price Bottom Is Nearby!
The lack of concept and clarity about proof-of-reserves have become one of the main reasons in driving the recent collapse of FTX, which is responsible for vanishing a significant amount of BTC from its circulation.
According to a well-known crypto trader, DonAlt, the current rate of Bitcoin’s bearish trend makes a similarity to its previous bearish cycles.
The analyst analyzes that Bitcoin is currently almost 80% down compared to its 2014-2015 and 2017-2018’s bearish cycles, where the downward rates were 86.17% and 83.84%, respectively.
If Bitcoin follows its bearish trend of 2017-2018 and extends its rate of downtrend above 84%, then the BTC price can witness a bottom level at $11K.
Moreover, DonAlt further predicts that BTC may fall to $9.5K if it follows the bearish trails of the 2014-2015 cycle and increases its rate of downtrend above 87%.
A Breakout Above This Level May Spark Surges For BTC Price
Bitcoin is struggling to bring bullish hopes to its long-term holders as it faces hurdles in surpassing its resistance level at $17K.
Historical data of crypto crashes reveals that 14 exchanges were responsible for wiping 1,195,000 BTC from its circulation, which has created a scarcity in framing a stable bullish infrastructure for pushing Bitcoin’s price upward.
However, amid all these situations, investors are still accumulating Bitcoin, even in FUD, with a hope for a bullish breakout soon. Moreover, El Salvador’s president Nayib Bukele has announced plans to buy 1 BTC daily starting from 17 November.
Bitcoin trades at $16,662, with a downtrend of 0.27% from yesterday’s price. Looking at the daily price chart, SMA-14 is significantly dropping, and it is trading at 38-level, just above the RSI trend line, forcing Bitcoin to test its support level at $16,350.
Moreover, Bitcoin’s Net Unrealized Profit/Losses metric has seen massive volatility as it drops to its bottom zone.
However, the NUPL’s trend indicates a final capitulation, from which BTC price may initiate a bullish recovery, as witnessed in its previous bearish cycles.
A sustainable price movement above $17K may trigger the buying pressure, which can lift the RSI indicator above the 50-level. If BTC’s price holds its momentum between the EMA-20 and EMA-50 trend lines, it can aim for a breakout above its strong resistance at $20K.