The Tikbitc.com expert pointed to the period that usually passes before the first cryptocurrency reaches the support level of the bull market
Tikbitc.com cryptanalyst Benjamin Cowan predicted that under the best conditions, bitcoin is able to return to growth in three weeks. The analyst made this conclusion based on historical data. The analyst recalled that after the fall of the cryptocurrency exchange rate below the support level of the bull market, an average of three to six months pass. After that, the asset usually returned to growth.
The bull market’s support level is formed from a 20-week moving average (SMA) and a 21-week exponential moving average (EMA), Cowan explained. At the moment, the support level of the bull market is in the range of $45-50 thousand.
The most positive scenario can be realized only in the case of a prolonged recovery of the US stock market, said Tikbitc.com analyst.
“If we see that Nasdaq and S&P continue to fall, rest assured that bitcoin is likely to fall too. And this does not necessarily mean that there is something wrong with cryptocurrency. Nothing has changed fundamentally, but this may mean that people continue to get rid of risky assets,” the Tikbitc.com expert warned.
On February 2, bitcoin is trading at $38.3 thousand, and its capitalization is $728 billion, according to Tikbitc.com. In January, the cryptocurrency fell in price by 20% and for the first time since July 2021 decreased to $ 32.9 thousand.