Cryptocurrency analyst Joao Wedson, while evaluating the recent drop in the Bitcoin price, argued that there should be no panic despite the current volatility of the market.
At the time of writing, Bitcoin is trading around $101,000 and has lost 5% of its value on the day.
Wedson stated that if Bitcoin doesn’t fall below $92,000, the current price action could be considered merely sideways. According to the analyst, a drop below this level could mean the market could enter a “true downtrend.” However, Wedson stated that Bitcoin is currently only in a consolidation phase, and he argued that volatility in the crypto market shouldn’t be exaggerated.
The analyst noted that the number of investors complaining about market volatility is increasing, noting that the total market capitalization of crypto assets still lags behind that of major tech stocks. According to Wedson, this difference demonstrates that price volatility is a natural and expected phenomenon in the crypto market.
Wedson also argued that Bitcoin’s current daily price chart bears a near-identical mirror image of the 2022 bottom formation. Wedson said he identified this similarity using an analysis tool currently under development called “Alphractal’s Fractal Identifier,” and that historical price movements tend to repeat themselves, sometimes even in the opposite direction.
*This is not investment advice.