Bitcoin (BTC) is showing signs of textbook macro bottoming in a “business as usual” bear market, data suggests.

in new finds published On Oct. 13, popular Twitter trader Alan revealed that BTC price action is closely mimicking previous cycles.

Trader in Stoch data: “Don’t be shaken”

While some are concerned about the current state of Bitcoin and the crypto markets, on-chain indicators have long suggested that the 2022 bear market is comfortingly similar to previous ones.

Looking at the one-month stochastic chart for BTC/USD, Alan highlighted that Bitcoin repeats a structure common to the 2014 and 2018 bear markets.

Stochastic oscillators are classic tools for identifying price cycles and bullish and bearish interaction.

Bitcoin has proven to be no exception, with monthly low stochastic readings perfectly matching bear market price lows, data from Cointelegraph Markets Pro and TradingView confirms.

Now those low levels are back, numbers that have only come up three times before.

BTC/USD (Bitstamp) 1-month candlestick chart with stochastic indicator. Source: TradingView

Not only does Stoch call for an impending new low BTC macro price, but it can also be used to determine where Bitcoin might bottom in the future.

Alan inferred potential price points from the existing data and predicted that the next cycle low could be $35,000.

“Bitcoin forms Flag on the previous setting of Flag. The yellow zone stochastic indicator shows (at least) the second half of the flag, where we are now,” he commented alongside the chart.

“Next pole low = $35k. A quick bounce always follows a fall. No emotions, don’t be shaken.”

BTC/USD annotated chart. Source: Trader Tardigrade/Twitter

A much needed silver lining

Phenomena such as Stoch’s behavior may well comfort traders who have seen Bitcoin plunge as much as 75% from all-time highs just eleven months ago.

Related: Price Analysis 10/14: SPX, DXY, BTC, ETH, BNB, XRP, ADA, SOL, DOGE, MATIC

With popular sources insisting that the bottom has yet to be reached, there seems to be little to rely on when analyzing BTC’s short-term price action.

Bulls are few and far between, including well-known analyst Philip Swift, who this week predicted to Cointelegraph that the 2022 bear market should end up being just that: done and dusted off by the end of the year.

Others have less hope. On the subject of financial asset values ​​in general, Goldmoney senior analyst Alasdair Macleod this week told investors to forget about the good times until the US Federal Reserve changes course on hikes. of interest rates.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should do your own research when making a decision.

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