Crypto analyst Gargoyle has advised market participants not to buy Bitcoin until it sees high volume, which could mark the bottom. This comes amid BTC’s recent drop below the psychological $80,000 level, with the leading crypto at risk of another decline.
Analyst Advises Against Buying Bitcoin Until Bottom Is Confirmed
In an X post, Gargoyle advised against buying Bitcoin until the bottom is confirmed. He indicated that the BTC bottom forms when there is massive volume and that this massive volume hasn’t happened yet. The analyst alluded to the 2022/2023 cycle, when the capitulation spike marked the bottom for BTC.
Related Reading
However, at the moment, this capitulation spike hasn’t occurred with Bitcoin’s volume still moderate, suggesting that market participants aren’t truly panicking yet despite the downtrend. Gargoyle further noted that the hardest flush always comes after retail thinks it is over for BTC, which then leads to a spike in volume as investors capitulate.
The analyst’s accompanying chart showed that Bitcoin could still drop to around $45,000 before it bottoms, while this could happen between now and the start of next year. Once that happens, BTC could then see a reversal as it targets a new all-time high (ATH). Notably, BTC had rallied over the past week to as high as $83,000, providing optimism that the bear market may be over.
However, Bitcoin has since dropped below $80,000, raising concerns that the bear market may still be in force, as some analysts, such as Doctor Profit, had warned. The analyst had also mentioned before that BTC will likely bottom between September and October later this year based on its historical cycle patterns.
BTC Bound To Decline If Stock Market Crashes
Crypto analyst Colin warned that the current stock market pump is the only thing keeping Bitcoin afloat. He further noted that, in the short term, the S&P 500 appears bullish following the recent megaphone breakout. However, in the longer term, the economic backdrop doesn’t look good for these stocks and, by extension, for BTC.
Related Reading
Colin alluded to the CPI and PPI, which are both running hot, with inflation rising due to the U.S.-Iran war. The analyst stated that this is not a favorable environment for a Bitcoin “super cycle,” as some bulls are claiming. It is worth noting that the market is also beginning to price in a rate hike this year, which is bearish for the leading crypto. As such, with the macro environment not looking good, Colin suggested that BTC will crash if the stock market sees any significant drop in the future.
At the time of writing, the Bitcoin price is trading at around $79,000, down over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
Credit: Source link
