According to the “Bitcoin Logarithmic Regression Rainbow” indicator, the leading cryptocurrency is known to return from the white trendline every bear season.
Only in the March 2020 collapse, BTC, which fell below this level and regressed to the last trend level, experienced a return by throwing a needle under this line.
After the declines in the last days, it is seen that BTC has again fallen to the white line that has started a bull.
If the leading cryptocurrency does not make a weekly close below the white line of $ 28,800 in the coming weeks, it may start a new bull season again.
Even in the COVID-19 collapse, which is one of the worst scenarios for the markets, BTC, which does not close weekly below the last trend line of the "Bitcoin Logarithmic Regression Rainbow" indicator, is expected to return from $ 20,000 in case of a major market crash.
Although many investors claim that there will be decreases below $ 20,000, the fact that the 200-week moving average is passing through this level means that the leading cryptocurrency will not lose its last peak of $ 20,000.
While it seems that there are many possibilities on the markets, a Bitcoin hanging below $ 20,000 may herald a much larger collapse.
What Awaits Cryptocurrencies?
In a new interview with InvestAnswers, Alex Mashinsky says the current correction that wiped hundreds of billions of dollars off the market is a routine stress test for the industry. The CEO of crypto lending platform Celsius Network believes inflation data will determine the direction of crypto markets.
Alex Mashinsky points to $25,000 as the bottom for Bitcoin. We hadn't seen this level even in last year's crash, but Terra UST's massive destruction has caused us to hit the worst bottom this year. Mashinsky thinks that when this whole process is completed, we will see new ATH rallies, where Bitcoin and surviving altcoins will create much stronger support zones.