A widely followed crypto analyst is overlooking this week’s implosion of FTX for a broader picture of the current state of the crypto market.
Pseudonym Analyst Rekt Capital To tell Their 329,500 Twitter followers are convinced that better days are ahead for Bitcoin (BTC).
“The BTC bull market will take place one day.
But today is not that day. ”
Rect Capital also Made to remember Traders believe this bear market will be followed by a bull market and then another bear market.
“People believe that we will never see another -80% bear market because BTC is now mainstream and too mature as an asset.
Remember there was a -53% fix a few months ago
Average bear market is -84.5% deep
Very likely to occur after this bull market. ”
analyst at the time pointed out Its BTC has already fallen 78% since October last year.
“After over a year [since October 2021] BTC has recovered almost -78% so far. ”
With that drop in mind, Rekt Warning BTC is set to drop to $11,000 based on past precedent.
“If the average BTC bear market correction is -84.5%, the price will fall to around $11,000 during this cycle.”
Starting to turn the conversation towards the recent FTX Fallout, Traders. To tell Exchanges tend to collapse during these periods of volatility.
“In times of BTC capitulation, manual dollar cost averaging at lower prices may be difficult
Exchanges tend to crash during periods of high volatility, which can make buying BTC difficult
Pre-set buy orders help gain BTC exposure during extreme volatility. ”
Then the pseudonymous analyst compare FTX to other declining exchanges such as BitMEX and Mt. Gox.
“In the previous BTC cycle it was Bitmex, before it was Mt Gox.
FTX now
pattern
Forex contagion has become a historic trend occurring near the bottom of the absolute BTC bear market
If it survives the capitulation, it will thrive in the bull market. ”
Finally, analyst Conclusion By reminding traders that bear markets lead to bull markets and set new all-time highs.
“In every cycle, BTC hit new all-time highs
Current all-time high is ~$69,000
Current price is $16,800 and may drop further
But if you’re planning on making big profits in the long term in the next bull market, the math is simple. ”
BTC is trading at $16,863 at the time of writing.
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