Bitcoin remains above $20,000 in spite of a dramatic increase in selling pressure during the last few days. Bitcoin has seen some of its most severe capitulations in history. You can read about it to get a new leg down.
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At the time of writing, BTC’s price trades at $20,700 with a 7% and 31% loss in the last 24 hours and 7-days respectively. Although market participants are expecting new highs and a resurgent bullish momentum, they could be caught off-guard by a resurgence in the price of BTC.
A pseudonym trader believes that the key to finding BTC’s price next major bottom is the Bitcoin Halving, the event that cuts this network block rewards in half every 4 years. Analyst claims that during a drawdown, the cryptocurrency finds a bottom “780-889 days after its previous” halving.
The Bitcoin network currently stands at 766 days from the event, as it nears a crucial support zone. As seen below, when these two events coincide, BTC’s price can resume bullish momentum and reclaim previous highs.
According to the analyst, the Bitcoin halving represents a bullish thesis. The cryptocurrency’s issuance is reduced and less BTC is available on the market. Conversely, BTC’s adoption levels trend to the upside.
Blockware Solutions shared the following chart with the analyst. As seen in the chart, BTC’s price seems directly correlated to the percentage of the population adopting it and indirectly correlated to its supply issuance.
In one visual, this is Bitcoin’s ultimate bullish case.
Exponentially growing user base juxtaposed to Bitcoin’s preprogrammed, increasingly deflationary monetary policy. pic.twitter.com/s7S48K5YDt
— Will Clemente (@WClementeIII) June 9, 2022
Claiming that the world is “still early” on Bitcoin, the analyst added:
What is the validity of the halvening theory? Where does the logarithmic support curve originate from? It is simple supply-demand economics. Bitcoin total supply inflation can be facilitated through the block reward. BTC miners create constant pressure on the market by selling Bitcoins.
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The analyst believes that BTC will still experience volatility, as well as a wide range of movement. In addition, BTC’s price could take time to form a convincing bottom.
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The analyst said the following on BTC’s price potential to re-test new lows:
So, while we may still go lower – and as we may see a liquidation cascade as ugly as we’ve seen since March of 2020 when $20K finally breaks, I believe from a timing perspective – the bear market bottom isn’t as far away as it may currently feel.