As most cryptocurrencies are slowly starting to recover from the shock caused by the FTX collapse, Bitcoin (BTC) is no exception, and its supporters refuse to stop believing in its bullish future, convinced by positive price indicators.
Indeed, experts over at the crypto analytics firm TradingShot have observed an “interesting fractal analysis on different time-frames showing that if Bitcoin holds last week’s low, a strong rally in 2023 is possible.”
Bitcoin fractal analysis. Source: TradingShot
Specifically, the level that the experts said Bitcoin is supposed to hold for the said rally to be possible stands at above $16,628. If it does, the fractal analysis sees a bullish potential increase, perhaps even to $95,000 by 2024.
What do other indicators suggest?
Another positive technical analysis (TA) indicator is the 200-week moving average (MA), which for Bitcoin has remained positive, as prominent pseudonymous Bitcoin analyst and Dutch institutional investor known as PlanB pointed out on November 13.
Bitcoin 200-week moving average. Source: PlanB
The analyst’s chart demonstrates Bitcoin’s price has stayed above the 200-week MA throughout the hardships that have engulfed the crypto market in recent months, including “another year, another exchange default,” as PlanB noted, referring to the FTX liquidity crisis.
In a comment to the tweet, he also stressed:
I don't care about crypto, bitcoin will survive. Bitcoin already survived MtGox default, Bitstamp hack, Bitfinex hack, Quadrigacx blowup. Bitcoin is designed to run without third parties. FTX default will not kill bitcoin, it will make BTC stronger: not your keys not your coins!
— PlanB (@100trillionUSD) November 13, 2022
More optimism in crypto sector
At the same time, another pseudonymous crypto analyst, Moustache, has noted that Bitcoin was close to touching the trendline that “has already held for 5.5 years,” as he illustrated on a chart.
Bitcoin price trendline. Source: Moustache
Optimism was also expressed by Robert Kiyosaki, the author of the personal finance book ‘Rich Dad, Poor Dad’, who said he was “not worried” about the decentralized finance (DeFi) token’s price movements.
Meanwhile, Tesla (NASDAQ: TSLA) CEO and new Twitter (NYSE: TWTR) owner Elon Musk is also confident that Bitcoin would survive the bear market, although he warned that it would be long before the asset realizes its full potential.
Bad signs stacking up against Bitcoin?
On the other hand, it is not all roses for the flagship digital asset, as analyst ghoddusifar over at CryptoQuant noticed that “despite the relative gains in US stocks, Bitcoin lost a very important support level,” which “was the ATH of the previous cycle.”
As the analyst stressed:
“So far, there is no record of Bitcoin returning below the ATH of its previous cycle. This could indicate weakness in the cryptocurrency market in the near future and further price reductions in them.”
Bitcoin versus stocks comparison. Source: ghoddusifar/CryptoQuant
Earlier, Bitcoin’s at-the-money (ATM) implied volatility (IV) more than doubled during the last week, mimicking the movements of the FTX Token (FTT) at the time, while its relative strength index (RSI) had dropped to its weakest in history.
At press time, Bitcoin was changing hands at $16,763, recording a minor gain of 0.41% on the day while losing 19.10% across the week, according to data retrieved by Finbold on November 14.
In the meantime, Finbold has compiled three key tips on surviving the market crash, as provided by a former stockbroker commonly known as the “Wolf of Wall Street,” Jordan Belfort, including taking a three- or four-year horizon, not looking beyond Bitcoin and Ethereum (ETH), and not playing into the panic.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.