{"id":486383,"date":"2022-08-20T20:48:52","date_gmt":"2022-08-20T17:48:52","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-why-the-bitcoin-price-bottom-is-not-in\/"},"modified":"2022-08-20T20:48:52","modified_gmt":"2022-08-20T17:48:52","slug":"3-reasons-why-the-bitcoin-price-bottom-is-not-in","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-the-bitcoin-price-bottom-is-not-in\/","title":{"rendered":"# 3 reasons why the Bitcoin price bottom is not in"},"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-6a26e9bfdc882\" 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-6a26e9bfdc882\" 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-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-the-bitcoin-price-bottom-is-not-in\/#%E2%80%9D_3_reasons_why_the_Bitcoin_price_bottom_is_not_in_%E2%80%9C\" >&#8221; 3 reasons why the Bitcoin price bottom is not in &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-the-bitcoin-price-bottom-is-not-in\/#Bitcoin_hash_ribbons_flash_bottom_signal\" >Bitcoin hash ribbons flash bottom signal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-the-bitcoin-price-bottom-is-not-in\/#BTC_price_rising_wedge_breaks_down\" >BTC price rising wedge breaks down<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-the-bitcoin-price-bottom-is-not-in\/#Bitcoin_bulls_are_misjudging_the_Fed\" >Bitcoin bulls are misjudging the Fed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-the-bitcoin-price-bottom-is-not-in\/#If_history_is_any_indicator%E2%80%A6\" >If history is any indicator&#8230;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_3_reasons_why_the_Bitcoin_price_bottom_is_not_in_%E2%80%9C\"><\/span>&#8221; 3 reasons why the Bitcoin price bottom is not in &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-28d77a7a>Bitcoin (BTC) recovered modestly on Aug. 20 but remained on course to log its worst weekly performance in the last two months.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_hash_ribbons_flash_bottom_signal\"><\/span>Bitcoin hash ribbons flash bottom signal<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On the daily chart, BTC&#8217;s price climbed 2.58% to $21,372 per token but was still down by nearly 14.5% week-to-date, its worst weekly returns since mid August. Nonetheless, some on-chain indicators suggest that Bitcoin&#8217;s correction phase could be coming to an end.<\/p>\n<p>That includes Hash Ribbons, a metric that tracks Bitcoin&#8217;s hash rate to determine whether miners are in accumulation or capitulation mode. As of Aug. 20, the metric is showing that the miners&#8217; capitulation is over for the first time since August 2021, which could result in the price momentum switching from negative to positive.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/5d90204f-4d88-4e12-b92f-28b9605e4f21.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin Hash Ribbon. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Nonetheless, Bitcoin has been unable to shrug off a flurry of prevailing negative indicators, ranging from negative technical setups to its continued exposure to macro risks. Therefore, despite optimistic on-chain metrics, a bearish continuation cannot be ruled out.\u00a0<\/p>\n<p>Here are three reasons why Bitcoin&#8217;s market bottom may not be in yet.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BTC_price_rising_wedge_breaks_down\"><\/span>BTC price rising wedge breaks down<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin&#8217;s price decline this week has triggered a rising wedge\u00a0breakdown, suggesting more losses for the crypto in the coming weeks.<\/p>\n<p>Rising wedges are bearish reversal patterns that form after the price rises inside a contracting, ascending channel but resolve after the price breaks out of it to the downside, which could result in a drop to as low as the maximum wedge&#8217;s height.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/bc12bc0e-e8a6-4d20-9566-7ae141dd3206.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USD daily price chart featuring &#8220;rising wedge&#8221; breakdown setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>lying the technical principles on the BTC chart above presents $17,600 as the rising wedge breakdown target. In other words, the Bitcoin price could fall by approximately 25% by September.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_bulls_are_misjudging_the_Fed\"><\/span>Bitcoin bulls are misjudging the Fed<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin had surged by approximately 45% during its rising wedge formation, after bottoming out locally at around $17,500 in June.<\/p>\n<p>Interestingly, the period of Bitcoin&#8217;s upside moves coincided with investors&#8217; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/markets\/us\/us-interest-rates-peak-seen-six-months-futures-2022-07-25\/\">growing expectations<\/a> that inflation has peaked\u2014and that the Federal Reserve would start cutting interest rates as soon as March 2023. <\/p>\n<p>The expectations emerged from the Fed Chairman Jerome Powell&#8217;s FOMC statement from July 27.\u00a0<\/p>\n<p>Powell:<\/p>\n<blockquote><p>&#8220;As the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases while we assess how our cumulative policy adjustments are affecting the economy and inflation.&#8221;<\/p><\/blockquote>\n<p>Nonetheless, the most recent Fed dot plot shows that most officials anticipate the rates to reach 3.75% by the end of 2023 before sliding back down to 3.4% in 2024. Therefore, the prospects of rate cuts remain speculative.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/2b353afd-1e29-45d6-9324-30721b25947c.jpeg\"><figcaption style=\"text-align: center;\"><em>Implied Fed funds target rate. Source: Federal Reserve<\/em><\/figcaption><\/figure>\n<p>St Louis Fed president James Bullard also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/feds-bullard-leans-toward-favoring-0-75-percentage-point-september-rate-rise-11660842768\">noted<\/a> that he would\u00a0support a third consecutive 75 basis point raise at the central bank\u2019s policy meeting in September. The statement falls in line with the Fed&#8217;s commitment to bring inflation down to 2% from its current 8.5% level.<\/p>\n<p><strong><em>Related:\u00a0Options data shows Bitcoin\u2019s short-term uptrend is at risk if BTC falls below $23K<\/em><\/strong><\/p>\n<p>In other words, Bitcoin and other risk-on assets, which\u00a0fell into a bear market territory when the Fed began an aggressive tightening cycle in March, should remain under pressure for the next few years.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"If_history_is_any_indicator%E2%80%A6\"><\/span>If history is any indicator&#8230;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The ongoing Bitcoin price recovery risks turning into a false bullish signal given the asset&#8217;s similar rebounds during previous bear markets.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/42a4d490-4cc9-4fd9-b94f-8b1afd52ed33.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD weekly price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>BTC&#8217;s price rebounded by nearly 100%\u2014from around $6,000 to over $11,500\u2014during the 2018 bear market cycle, only to wipe-off the gains entirely and drop toward $3,200. Notably, similar rebounds and corrections also took place in 2019 and 2022.<\/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.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/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\/3-reasons-why-the-bitcoin-price-bottom-is-not-in\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; 3 reasons why the Bitcoin price bottom is not in &#8220; Bitcoin (BTC) recovered modestly on Aug. 20 but remained on course to log its worst weekly performance in the last two months. Bitcoin hash ribbons flash bottom signal On the daily chart, BTC&#8217;s price climbed 2.58% to $21,372 per token but was still&#8230;<\/p>\n","protected":false},"author":1,"featured_media":486384,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvNWQxNTgwNTItYTNiYy00MzA1LWIxZWEtNzFhZjAyOTk4NWIyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,79109,74939,78261,70550,73785],"class_list":["post-486383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-interest-rate","tag-market-analysis","tag-tech-analysis","tag-federal-reserve","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/486383","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=486383"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/486383\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/486384"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=486383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=486383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=486383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}