Despite the continuous fermentation of bad news such as inflation and interest rate hikes, the selling pressure of the entire crypto market has increased significantly in recent days. Although Bitcoin, the largest cryptocurrency, has suffered a heavy setback, the price of Bitcoin remains above $20,000.
There is no doubt that the cryptocurrency is going through some of the worst pullbacks in its history and has been dubbed a new bear market by many investors.
A pseudonymous trader believes the key to finding the next major bottom in BTC’s price is the Bitcoin halving, an event that cuts the network’s block reward in half every 4 years. Analysts claim that during the pullback, the cryptocurrency bottomed out “780-889 days after the halving.”
Currently, the Bitcoin network is 766 days away from this event as it approaches a key support area. As shown in the chart below, when these two events happen at the same time, the price of BTC can resume bullish momentum and recover the previous highs.
The analyst claims that the halving is part of Bitcoin’s bullish argument. For more blockchain news, please pay attention to download the WikiBit APP, the global blockchain regulatory inquiry APP. Because cryptocurrencies have less issuance, and less BTC is available in the market. Conversely, BTC adoption levels are trending upward.
The analyst shared a chart from Blockware Solutions. As shown, the price of BTC appears to be directly related to the percentage of the population adopting it and indirectly related to its supply issuance.
Claiming that the world is “in its early days” with Bitcoin, the analyst added: “Why does the halving model have any validity, where does the hypothetical logarithmic support curve come from? Simple supply and demand economics. Blocks Rewards are a tool for inflating the total supply of Bitcoin. BTC miners provide constant selling pressure to the market.”
Despite this argument, analysts claim that BTC could still face a lot of volatility and a lot of range-bound action. Also, it may take time for the price of BTC to form a convincing bottom.
The analyst had this to say about BTC’s price potential for a retest of new lows: “So while we may still go lower — and we could see as ugly as we’ve seen since March 2020 when it finally broke $20,000 The liquidations are cascading, but I believe from a timing standpoint – the bear market bottom isn’t as far away as it feels right now.”
