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Despite the recent positive developments in the market, Bitcoin remains indecisive about whether it can gain any ground on the 2021 market cap levels. According to experts, this year’s bear market is the worst in history for Bitcoin and other cryptocurrencies. It has caused many traders to panic and sell off despite losing money.
For Bollinger, Bitcoin’s Bottom Is the “Logical Place”
According to data from the TradingView, the price of Bitcoin is hovering around $21,000 on Bitstamp. Despite the lack of fresh signs of weakness, analyst Michael van de Poppe of the cointelegraph noted that the pair could still test important levels. For instance, the 200-week moving average at around $22,400 could be next.
In the past, Bitcoin was a steal under its realized price, which is the aggregate cost basis of all the coins in supply. Currently, Bitcoin is around $22,500.
Although many investors expected a bullish trend to develop, a long-term perspective was also taken into account regarding the price of Bitcoin. For instance, John Bollinger, the creator of the Bollinger band volatility indicator, noted that the recent price movement is the culmination of a long-term trend. Following a “picture perfect” double top pattern on Bitcoin in 2021, he predicts the next move to be higher.
“Nearly All” Bitcoin Metrics Hit All-Time Lows
In its weekly newsletter, Glassnode discussed various on-chain metrics that could indicate a bottom in Bitcoin. However, nothing was certain due to the unprecedented macro environment at that time. In addition to analyzing multiple indicators, the firm also looked into the potential bottom formation of Bitcoin.
The article noted that due to the current macroeconomic environment, the historical precedents and models are likely to be tested. It said that Bitcoin’s current price is unlikely to break out of its current range. It noted that the recent selling resulted from people who bought the digital asset in 2020 and 2021.
In addition to analyzing multiple indicators, the firm also looked into the potential bottom formation of Bitcoin. According to the newsletter, most of the macro indicators for Bitcoin are at all-time lows, consistent with the bear market floor formation observed in previous cycles.
On that day, the sentiment was no different. The Fear & Greed Index, which measures the level of extreme fear in the market, hit a record high of 10/100. This is a classic bear market reversal level.
SOL and LUNA Rise Significantly
Solana’s recovery trend continued on June 28. The stock is now approaching a potential bullish reversal pattern. The SOL’s price rose 2.42% to reach an intra-day high of 39.40, as a broader technical move that started on June 14 continued to gain momentum. The pair is now up 50% from its lows of $26.
Suppose the SOL price closes above its neckline resistance at around $40.50, the chances of a bullish reversal increase significantly. Its upside target is $68, which is 75% above the current price.
Following the collapse of the cryptocurrency market last month, the company behind Luna and TerraUSD launched a new coin. The price of this new token, called LUNA2, increased significantly nine days following its launch.
The price of LUNA2 rose on June 27 after recovering from its previous low. However, it is still trading below its May 30 high of $12.24 and is more than 75% below its previous low.
The price of LUNA2 has increased by 8% in the past 24 hours. However, despite the recovery in the market, the liquidity in the market has remained low due to the widespread selling of cryptocurrencies.