Cryptocurrency expert Tony Severino opined that Bitcoin is not only showing signs of an annual peak, but also that the BTC price may have hit a 16-year cyclical high. This comes in the wake of the flagship cryptocurrency’s recent crash to $60,000, which has sparked fears of bear market.
Bitcoin may be showing signs of a top as BTC price falls to $60,000
In Post XSeverino referred to Bitcoin’s annual chart, which he said looks like a 16-year cyclical high, not just an annual high. The expert also provided several reasons why this appears to be the case: main cyclical peak for the price of BTC. First, he noticed that the size of the white candlesticks decreased over time, while the black candlesticks absorbed more and more white candles each time.
Moreover, Severino highlighted the Doji at the top of the rising wedge formation while the Evening Star is in progress, which is a bearish signal of a BTC price reversal. Meanwhile, the Fischer Transform is going through a bear market with divergence, and the Stochastic is going through a bear market after rejection from 80. He added that Bitcoin Relative Strength Index (RSI) falls below 70 after crossing this level on the highest interval chart.
His analysis comes as the price of BTC continues to decline, suggesting the cryptocurrency market may be in a bear market after peaking in October last year. Earlier this week, Bitcoin fell to as low as $60,000, recording its biggest daily decline since then the fall of FTX. Experienced trader Peter Brandt also did this expressed his opinion that Bitcoin is in a bear market, predicting that it could fall as low as $42,000 before it bottoms out.
The reason for the recent BTC crash
BitMEX co-founder Arthur Hayes commented on the cause of Bitcoin’s recent crash, suggesting it was due to external factors and not part of an ongoing bear market. In Post Xstated that the BTC price decline was likely due to the dealer hedging with BlackRock’s BTC ETF structured products. Notably, on the day of the crash, BlackRock’s IBIT Index saw record trading volume of $10 billion to $60,000.
Hayes’ commentary is on the back Bitcoin bounces above $70,000with the flagship cryptocurrency yesterday posting one of its biggest daily post-crash gains to $60,000. Research Director at Galaxy Digital, Alex Thorn suggested that a drop to $60,000 could mark a low for the BTC price. This came after he noted that the 200-week MA, which is around $60,000, has historically been a forceful entry point for long-term investors.
At the time of writing, BTC is trading at around $70,000, up over 6% in the last 24 hours, according to data from CoinMarketCap.
Featured image from pngtree, chart from Tradingview.com
