Where’s The Bitcoin Price Bottom? 3 Educated Guesses
Bitcoin’s market price on crypto exchanges fell to its lowest price since the early August massacre when it dumped below $50,000 for the first time since the spot Bitcoin ETFs were greenlighted in the US and started seeing actual demand.
BTC bounced off the previous such crash and even soared to $65,000 weeks later. However, the bears seem back in control now, with the asset down by 7% in the past seven days.
So what will it take for Bitcoin price to rebound again and when will that happen? Here are three BTC price predictions for the current market conditions.
1. $57,000 – BTC Miner’s Electricity Cost to Price Signal
X.com crypto analyst Astronomer Zero made this prediction Thursday before the US jobs report kicked bitcoin’s price down another $4,000. If Zero is right, that’s a bump in the road that should wash out soon.
The weekly hash ribbons, another 100% accurate bottom signal just flashed
To finish up the data analysis considering whether this is a good time to buy, I included one more set of data analysis with once again powerful results (16 data points over the entire history of… https://t.co/H6CIcn0hOJ pic.twitter.com/6zwhZONPrM
— Astronomer (@astronomer_zero) September 6, 2024
The analyst spotted a pattern in miner capitulation and rebounds that could signal the market bottom is near for bitcoin.
“The mechanics of the hash ribbons are fairly simple: each time a cross up happens, the buy signal flashes,” Zero wrote. “This comes from an increase of the hash rate after a steep drop i.e. a compromise of the networks hash rate, a direct consequence of miners capitulation.”
2. $53,480 – Fibonacci Retracement
This represents a 25% drop from the top for BTC’s price of almost $74,000 registered in March. This is a common Fibonacci retracement percentage.
If BTC follows this mathematically common pattern found throughout nature as well as in liquid financial markets with lots of participants, we might be passed the bottom and on to another rally.
3. $50,000 – Recessionary Macro Bear Market
In BitMEX co-founder Arthur Hayes’ recent worst-case scenario prediction, the bear market in stocks widens, or there’s a US recession, and bitcoin goes as low as $50,000. Still, even he pivoted from his short strategy by closing his position on Sunday and hinting at a potential rally.
Peter Brandt, a well-known commodity and foreign exchange trader cautions it’s not just how low the price goes, but how long markets will have to wait until they begin to recover, “There are two dimensions to drawdowns – price and duration Prolonged corrections can cause more emotional damage than can steep corrections.”
The last time Bitcoin closed lower than the present price was February 25, 2024. $BTC #Bitcoin
There are two dimensions to drawdowns – price and duration
Prolonged corrections can cause more emotional damage than can steep corrections pic.twitter.com/IVwEx2PHic— Peter Brandt (@PeterLBrandt) September 6, 2024
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