Data suggests Bitcoin (BTC) is showing textbook macro bottom signs in a business-as-usual bear market.
In fresh insights released On Oct. 13, popular Twitter trader Alan revealed that BTC price action closely mimics previous cycles.
Traders on Stoch data: “Don’t be shaken”
While some are concerned about the current state of the bitcoin and crypto markets, on-chain indicators have long suggested that the 2022 bear market is reassuringly similar to previous ones.
Looking at the BTC/USD one-month stochastic chart, Alan highlighted that Bitcoin is repeating a structure common to the 2014 and 2018 bear markets.
Stochastic oscillators are classic tools for identifying price cycles and bullish and bearish interactions.
Bitcoin has proven to be no exception, with monthly low stochastic readings perfectly aligned with bear market price floors, as confirmed by data from Cointelegraph Markets Pro and TradingView.
Now those lows are back – numbers that have only appeared three times before.
Not only does Stoch call for an imminent new macro BTC price bottom, but it can also be used to determine where Bitcoin may bottom in the future.
Deriving potential price points from existing data, Alan predicted that the bottom of the next cycle could come in at $35,000.
“Bitcoin forms flag above previous flag configuration. The yellow zone of the stochastic indicator shows (at least) the second half of the flag where we are right now,” he commented alongside the chart.
“Next pole low = $35,000. A dip is always followed by a quick rebound. No emotions, don’t let them shake you.”
A much needed silver lining
Phenomena such as Stoch’s behavior may offer some comfort to traders who have watched Bitcoin plunge as much as 75% from all-time highs just 11 months ago.
Related: Price Analysis 10/14: SPX, DXY, BTC, ETH, BNB, XRP, ADA, SOL, DOGE, MATIC
With popular sources insisting that the bottom is not yet in, there seems little reason for optimism when analyzing near-term BTC price action.
Optimists are few and far between, including notable analyst Philip Swift, who this week predicted to Cointelegraph that the 2022 bear market should be just that — done and dusted by the end of the year.
Others are less hopeful. On the subject of financial asset values in general, Goldmoney senior analyst Alasdair Macleod this week told investors to forget the good times until the Federal Reserve changes tack on rate hikes.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.