Bitcoin's recent trend is unpredictable, and many experts believe that there is still room for decline before the bull market arrives next year. The founder of Placeholder Capital pointed out that the market is forming a bottom as "selling exhaustion" is about to come.
Placeholder is a cryptocurrency venture capital firm that manages over $100 million in capital!
Has Bitcoin hit bottom?
The recent cryptocurrency market is unpredictable. Although trading volume and market sentiment have made great progress compared to August and September, and there is a certain consensus that the bull market is coming, how to "catch the bottom" before the bull market has become a headache for many people.
Many institutions and experts believe that the current cryptocurrency market still has room to fall, and it is not ruled out that the bull market will not really start until Bitcoin retests the bottom of $20,000 and Ethereum retests the bottom of $1,000.
Data revealed by institutions say that "selling exhaustion" is coming!
Chris Burniske, founder of Placeholder Capital, recently said on social media that leading cryptocurrencies such as Bitcoin and Ethereum may be forming a bottom.
Chris Burniske noted: "Fear is high in the market, but from a timing and price perspective, the selling is close to exhaustion."
He also emphasized that it is not ruled out that Bitcoin may still fall back to the low of $20,000 and drag most long-tail assets (except $SOL ) to new lows, but when looking between the fourth quarter of 2023 and the first quarter of 2024, it will be found that this is a good time to buy.
Chris Burniske shows a long-term linear chart of Ethereum ($ETH), analyzing that after the previous sudden drop, Ethereum is now retesting the support levels provided by the 200-week simple moving average (SMA) and the 200-week exponential moving average (EMA), which are key indicators.
Uptober brings altcoin season
"Uptober" is slang in the cryptocurrency space
Uptober generally indicates that October’s price action for Bitcoin and other cryptocurrencies is likely to be bullish. Unlike last year, this year’s situation seems to be more in line with the classic “Uptober” trend.
At the same time, due to the "Uptober" effect, Altcoin Sherpa analysts and traders believe that Ethereum and other altcoins will experience explosive growth between the fourth quarter of 2023 and the first quarter of next year.
On the positive side, breaking through the $1,750 resistance level means that Ethereum has successfully defended all key moving averages and remained above the 21-day, 100-day and 200-day moving averages. Such a result is very helpful in locking in the upward trend, and traders will be more inclined to consider going long, which gives Ethereum a good chance to rush to $2,000 after breaking through $1,750.
On the contrary, if the 21-day exponential moving average (EMA) (red) at $1,641, which serves as an immediate support level, fails to hold and the relative strength index (RSI) maintains a downward trend, a retest of the mid-line support is likely. Once the RSI falls to the oversold area below 30, Ethereum’s next move is likely to fall below $1,600.
personal opinion:
Bitcoin shows TD13 in the 4-hour trend conversion indicator and is likely to pull back. If it does not fall below $27,000, consider looking for opportunities to go long. If the price breaks through $29,000, the rebound may reach the previous high of $31,850.
Market fluctuations are unpredictable, and investment requires careful research and risk management. The content and views shared above do not constitute investment advice.