It’s not a secret that Bitcoin hasn’t done well over the past few days and weeks; since the weekend’s $9,200 peak, the cryptocurrency has lost nearly 18%, and since the $10,600 peak in February, BTC has shed over 25%. In the process of this brutal move, hundreds of millions' worth of leveraged positions has been liquidated.
Furthermore, with a harrowing macro outlook and Bitcoin seemingly becoming correlated with the stock market, some have been wondering if BTC could enter back into a bear market. One analyst, in fact, warned of a potential return to $4,000.
Despite these fears, many are staying optimistic. In fact, the trader who called the return to $7,500 when investors were, by and large, expecting a further rally above $10,000 recently floated the scenario that BTC is in the midst of bottoming.
Related Reading: Top Macro Analyst Explains Why Bitcoin Has Crashed 17% Since $9,200
Accurate Analyst Floats Idea That Bitcoin Is Bottoming
When BTC was floating above $9,000 near the end of February, Nik Yaremchuk, an analyst at Adaptive Capital (a crypto hedge fund), floated the below scenario, calling for the leading cryptocurrency to retrace to $7,500, which then would’ve been a drop of around 20%.
Yaremchuk now predicts that Bitcoin may actually be bottoming, writing in a tweet published just an hour ago as of the time of this article’s writing that the cryptocurrency is potentially forming a textbook bottom as defined by the studies of Richard Wyckoff, a historic technical analysis expert.
The cryptocurrency following the textbook scenario will see it move sideways here, briefly dip to establish a new low around $7,500, then rally to break out of the accumulation range at $8,200.
I think there will be a sideway here, then we will get another low and then after that we will break $8,200. BTW, look at the Wyckoff scenario. Perhaps this will not be a new low, just a sideway.$BTC
See Nik's other Tweets
This is important as a similar Wyckoff Accumulation pattern was found at the bottom in December and at the start of January. While this pattern isn’t of the same size (meaning across the same time frame), BTC completing this pattern may set the stage for a stronger surge towards $8,500.
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