A widely followed crypto analyst is looking past this week’s FTX implosion to get a wider picture of the state of the current crypto markets.
Pseudonymous analyst Rekt Capital tells their 329,500 Twitter followers that better days are ahead for Bitcoin (BTC).
“A BTC Bull Market will take place one day.
But today is not that day.”
Rekt Capital also reminds traders that after this bear market will be a bull market, and after that – another bear market.
“People think BTC will never see another -80% Bear Market because it is now mainstream & too mature of an asset
Let’s not forget there was a -53% correction just months ago
Average Bear Market is -84.5% deep
It’s very likely one will occur after this Bull Market.”
The analyst then points out that BTC has already fallen 78% since last October.
“Over one year later [since October 2021] and BTC has retraced almost -78% so far.”
With that drop in mind, Rekt warns BTC is due to drop to $11,000, based on historical precedent.
“An average BTC Bear Market correction of -84.5% would see price drop to ~$11,000 in this cycle.”
Beginning to direct the conversation toward the recent FTX fallout, the trader says exchanges tend to collapse during these periods of volatility.
“In times of BTC capitulation manual dollar cost averaging at lower prices may be challenging
Exchanges tend to crash during intense volatility & can be difficult to buy BTC
Buy orders set beforehand can help you gain BTC exposure during extreme volatility.”
Then, the pseudonymous analyst compares FTX to other fallen exchanges like BitMEX and Mt. Gox.
“In previous BTC cycles, it was Bitmex, earlier it was Mt Gox
Now FTX
It’s a pattern
Exchange contagion has become a historical tendency that occurs close to the absolute BTC Bear Market bottom
Survive the capitulation & you will flourish in the Bull Market.”
Finally, the analyst concludes by reminding traders that bear markets lead to bull markets, which lead to new all-time highs.
“In every cycle, BTC has made a new All-Time High
Current All-Time High is ~$69,000
Current price is $16,800 with scope for further downside
But the math is simple if you’re planning to make a great return over the long run in the next Bull Market.”
BTC is trading for $16,863 at time of writing.
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Source: https://dailyhodl.com/2022/11/11/heres-where-bitcoins-price-may-land-after-ftx-implosion-according-to-rekt-capital/