“Last Time Bitcoin Did This, It Bottomed at $6,400. It’s About to Happen Again” – says NewsBTC.
Bitcoin Could Bottom Very Shortly: Here’s Why
Although Bitcoin seemingly moves irrationality, bouncing between prices here and prices there, the cryptocurrency acts like other markets in that prices of historical relevance are tested again and again.
Josh Rager, a well-known crypto-asset trader, recently touched on this, arguing that this propensity to retest historical levels may mean BTC will soon bottom
In a chart shared on Sunday, Rager suggested that Bitcoin has the potential to find a bottom of the bear trend at $8,160 — 4.5% below the market price as of the time of this article’s writing, $8,550. He elaborated:
“The point of control for the entire [history of the CME BTC futures] is at $8,160.”
This fact is relevant because the last time Bitcoin encountered an area of historical high volume, it put in a decisive bottom. As Rager explained further: “Last time Bitcoin hit a major high volume area was at the local bottom around $6,400, which led to a price reversal.”
$BTC Potential Bottom
Point of control for the entire CME BTC chart history is at $8160
Last time price hit a major high volume area was at the local bottom around $6400 which led to price reversal
Watch for the weekly candle to stay above $8160 w/ a wick down as low as $7800 pic.twitter.com/UO8rl0FYu9
— Josh Rager 📈 (@Josh_Rager) March 1, 2020
A point of control, for those unaware, is a price point that an asset has traded at most (determined by the volume/market profile) over a chosen time period. In cryptocurrency, a digital asset’s POC is often seen as either a level of support or a level of resistance, depending on if the asset is trading above or below it.