Analyst predicts Bitcoin will plummet soon but recommends buying Bitcoin

As we all know, many cryptocurrencies have been experiencing price slumps. The price of bitcoin, the world’s largest digital currency, fell to about $17,622 as of June 18. This data comes from Binance. Since then, there have been several discussions about whether this price will be the lowest price for the asset.

A digital currency analyst at CryptoQuant has revealed the likely price of Bitcoin in the near term. Encrypted Quantum It is a recognized digital currency resource platform. According to the analyst, a price of $17,622 may not be the lowest price Bitcoin will ever see. However, given current levels, this assumption is not very reliable.

Crypto Winter Overview

Many traders and investors are still skeptical that positive changes will come soon. Several pieces of information suggest that Bitcoin prices may still be below $20,000.

This situation has caused some digital currency holders to sell their assets. Also, prior to this, some major cryptocurrency companies have made some tough decisions due to the bearish market. A notable example of these crypto companies is Vault.

Source: CryptoQuant

The crypto lending platform has reportedly had to suspend withdrawals and reduce headcount. This was announced on July 4th.

possible bitcoin price

Taking it a step further, Tomáš Hančar, an analyst at Crypto Resource Platform, explained the possibilities of his prediction. According to him, LTH SORP 20-day chart SMA forecast 1/3rd Opportunity for Bitcoin to hit its lowest price.

The explanation of the above indicator (SMA) is an acronym for Simple Moving Average on a 20-day chart. This stands for LTH SOPR (Long Term Holder Spend Output Profit Rate.

The data shows that the ratio has been below the just level of “one” for three consecutive months. According to analysts’ forecasts, this is 1/3 of the level that explains the potential bottoming process.

The analyst further explained the function of the 20-day concept of the indicator he used. He cites the idea of ​​the 20-day indicator to shift the appropriate norm.

Bitcoin can be bought now, says Tomáš Hančar

After this analysis, Tomáš Hančar concluded that it is time to start buying BTC. This is because there will be a strong rebound in a short period of time. However, he added, there is one downside to be aware of. This is the probability of the digital token falling below the $20,000 price mark.

Analyst predicts Bitcoin will plummet soon but recommends buying Bitcoin
Bitcoin price maintains bullish trend Source: BTCUSDT trading view

According to Crypto Market Watch data, it has been 47 days since Bitcoin’s price last made a new low.

Considering this fact, the analyst further advises traders; he noted that it is necessary for traders to deploy potential breakout options.

Featured image from Pexels - Chart from TradingView.com

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