{"id":265194,"date":"2021-06-03T01:00:00","date_gmt":"2021-06-02T22:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/analyst-says-bitcoin-could-see-a-smaller-drawdown-and-a-quicker-bottom\/"},"modified":"2021-06-03T01:00:00","modified_gmt":"2021-06-02T22:00:00","slug":"analyst-says-bitcoin-could-see-a-smaller-drawdown-and-a-quicker-bottom","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/analyst-says-bitcoin-could-see-a-smaller-drawdown-and-a-quicker-bottom\/","title":{"rendered":"# Analyst says Bitcoin could see \u2018a smaller drawdown and a quicker bottom&#8217;"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a25714d3e4d7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a25714d3e4d7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/analyst-says-bitcoin-could-see-a-smaller-drawdown-and-a-quicker-bottom\/#Market_top_or_bull_market_breather\" >Market top or bull market breather?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/analyst-says-bitcoin-could-see-a-smaller-drawdown-and-a-quicker-bottom\/#Altcoins_stage_double-digit_rallies\" >Altcoins stage double-digit rallies<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Analyst says Bitcoin could see \u2018a smaller drawdown and a quicker bottom&#8217; <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The cryptocurrency faithful got a reprieve from recent market struggles thanks to a rally in decentralized finance (DeFi) tokens and Dogecoin (DOGE) on June 2. A bit of a breakout in the price of Ether (ETH) and Bitcoin (BTC) may have also lifted sentiment, but at the moment, the top-ranked digital assets are still meeting pushback at key overhead resistance levels.\u00a0<\/p>\n<p>Data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/\">TradingView<\/a> shows that the price of Bitcoin rallied 7.3% from a low of $35,645 on June 1 to an intraday high at $38,250 on June 2, and Ether\u00a0saw a similar-sized gain of 7.7% to briefly regain the $2,800 support level.<\/p>\n<p>While the uptick in prices has many calling for a continuation of the 2021 bull market, some analysts have highlighted a possible bearish pennant formation on the Bitcoin chart, which could result in a price breakdown to as low as $16,000.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/7dbbe996-a763-41f5-b237-64d07933dd62.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin pennant structure and its primary downside target. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Market_top_or_bull_market_breather\"><\/span>Market top or bull market breather?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin\u2019s volatile price action over the past month has led many to speculate on whether the top is in for BTC or the current correction is just a mid-cycle breather that will prepare the asset for continuation once the rally resumes.\u00a0<\/p>\n<p>Deeper insight into the matter was provided in a recent Delphi Digital\u00a0report that discussed the MVRV ratio, an on-chain metric that measures Bitcoin\u2019s market value (MV) against its realized value (RV) as an indicator that can help traders determine market tops and bottoms. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/8d1b4dcc-dd00-4945-9ea2-ffcc941d08c6.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin MVRV ratio vs. price. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.delphidigital.io\/\"><em>Delphi Digital<\/em><\/a><\/figcaption><\/figure>\n<p>The chart above shows that the MVRV ratio became overextended in early 2011, late 2013 and early 2018, \u201call of which represented cycle tops,\u201d as highlighted by Delphi Digital. The researchers also suggested that \u201cMay 2021\u2019s reading could very well indicate the top for this cycle.\u201d<\/p>\n<p>While it is possible that the top may be in for the current cycle, Delphi Digital also noted that there is the potential for the market to \u201csee an outcome that resembles 2013\u2019s &#8216;double bubble&#8217; where BTC made an ATH [all-time high], price fell hard, and then recovered well past the ATH in the same year.\u201d<\/p>\n<p>The report further highlighted the fact that the threshold for determining Bitcoin\u2019s bottom has increased over time, which could change the landscape of bull markets in the years ahead. <\/p>\n<p>According to Delphi Digital:<\/p>\n<blockquote><p>\u201cGiven the steep drop in MVRV so far, it\u2019s possible that BTC could see a smaller drawdown and a quicker bottom than in previous cycles. This would resemble something like global\u00a0equities, which have multi-month corrections and multi-year bull cycles.\u201d<\/p><\/blockquote>\n<p>As a note of caution, the report did point out that while \u201cThere\u2019s a lot of conflicting data and sentiment\u201d in the market currently, there is likely to be \u201can episode of mean reversion in coming weeks as price deviated far from its 50 day moving average.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/3af5d23f-2709-41b3-a2d3-3eb8b0e0a881.jpg\"><figcaption style=\"text-align: center;\"><em>BTC base case: mean reversion. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.delphidigital.io\/\"><em>Delphi Digital<\/em><\/a><\/figcaption><\/figure>\n<blockquote><p>\u201cHistorically, BTC price has been fairly close to its 50 day MA. And looking at previous drawdowns, BTC has always posed a healthy relief rally after a deep retracement. This is a result of natural market reflexivity.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Altcoins_stage_double-digit_rallies\"><\/span>Altcoins stage double-digit rallies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Altcoins notched double-digit gains during June 2\u2019s price action, led by a 53% gain in the price of Kyber Network&#8217;s KNC token, which is now back above $2.50. KAVA also secured a 37% rally and currently trades near $4.70. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/dfb7edc1-bb86-465d-b982-c877f4e61e13.jpg\"><figcaption style=\"text-align: center;\"><em>Daily cryptocurrency market performance. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coin360.com\/\"><em>Coin360<\/em><\/a><\/figcaption><\/figure>\n<p>Dogecoin, Kusama&#8217;s KSM token and Curve DAO&#8217;s CRV token also helped lead the altcoin charge, with price rallies around 25%, while OKB put on a 33% gain and trades near $17.70. <\/p>\n<p>The overall cryptocurrency market capitalization now stands at $1.709 trillion, and Bitcoin\u2019s dominance rate is 41.5%.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a decision. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/analyst-says-bitcoin-could-see-a-smaller-drawdown-and-a-quicker-bottom\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Analyst says Bitcoin could see \u2018a smaller drawdown and a quicker bottom&#8217; &#8221; The cryptocurrency faithful got a reprieve from recent market struggles thanks to a rally in decentralized finance (DeFi) tokens and Dogecoin (DOGE) on June 2. A bit of a breakout in the price of Ether (ETH) and Bitcoin (BTC) may have&#8230;<\/p>\n","protected":false},"author":1,"featured_media":265195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvYTljMzMzYzYtMWVhNy00YzJhLWFjZDUtOGM0MDgzZGYzY2NiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74937,74982,74863,74868,86883,82402,74891,74939,75150,73785],"class_list":["post-265194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-price","tag-btc-markets","tag-cryptocurrencies","tag-defi","tag-dogecoin","tag-ether-price","tag-ethereum","tag-market-analysis","tag-market-update","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/265194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=265194"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/265194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/265195"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=265194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=265194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=265194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}