Through a tweet posted on June 22, Clemente noted that Bitcoin is in line for a ‘mean reversion’ based on the asset’s recent price movement that dipped by over 60% from its all-time high. According to the analyst, Bitcoin only managed to sustain gains above $20,000, mainly due to forced selling pressure that won’t sustain above the level.
Where is Bitcoin heading next?
After plunging below $20,000, several market analysts have differed on the next course of action, with a section maintaining that the level is the bottom before a rebound. For instance, crypto trading expert Michaël van de Poppe believes that there is a possibility of Bitcoin undergoing a timeframe trend switch after hitting a bottom. Elsewhere, prominent crypto analyst Rekt Capital believes that Bitcoin is yet to hit its bottom, especially by reviewing previous sell volumes. Through a tweet on June 22, Rekt noted that although the cryptocurrency is trading below the 200-week moving average, the previous bear bottom was characterised by high sell volume accompanied by above-average buy volume. However, the analysts pointed out this is not the case in the current market condition. Amid the uncertainty around Bitcoin’s next price action, the asset is likely to react to the next move by the Federal Reserve in taming inflation. This is after Fed chair Jerome Powell appeared before the Congress on June 22, noting that the institution will likely keep raising interests depending on the general outlook of the economy. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
