Bitcoin and crypto market analyst, David Puell, has some heartwarming news for you. You see, while all market forecasts remain mere predictions, which are bound to fail, they are important for sustaining bullish market sentiments.
Therefore, despite all the positive predictions about the cryptocurrency market, the crypto winter persists, leading to massive selloffs of cryptos. Still, Puell is optimistic about Bitcoin bottoming out sooner than many crypto enthusiasts and pundits expect.
David Puell tweets
In a stream of Twitter bolts, Puell carried out an extensive technical analysis (T.A.) of the crypto market performance. Well, that would later lead him to an intriguing conclusion. Lest we jump the gun, we will review his T.A. before discussing his conclusion. Tweeting on Tuesday, Puell shared two pieces of news: bad and good news, according to him. First, he regretted to inform investors that the crypto market has yet to bottom out. As expected, he called it “bad news.” Coming to the good news, Puell tweeted “The bottom is not far away.”
Reviewing the good news
He argued that since the market has become more volatile lately, it is critical to have “a granular view of the current node structure.” Explaining further, Puell wrote that significant levels of resistance have piled up. Therefore, it is pertinent to watch pullbacks closely to spot signs of exhaustion. Later, he asserted that the center of mass falls on $4,300 USD area.
Similarly, the crypto analyst made some thought-provoking observations. Based on the free fall of the Bitcoin price and its major resistance formed around $4,000 USD and $6,000 USD, a further decline is bad news. In more tweets, he stated that a further dip below $4,000 USD will lead to Bitcoin losing all the momentum it has gained in recent times. Consequently, $2,800 USD is the price target where the preeminent virtual currency can bottom out. This price will signify an 85% drop from its ATH of $19,500 USD.
Arriving at a general conclusion
However, Puell noted that there is a caveat in his T.A. According to him, the three conditions that the market must satisfy include selloff reaching its climax and obvious market exhaustion display. In addition, he asserted that the final condition is that the bear loses its leverage.
In conclusion, Puell deduced that due to the strength of the downturn and current information, “a selling climax may come soon.” Asked when he believes it will happen? Yes, December! That’s not all. He posited that if it doesn’t happen in December, the worst it could get is late February. Nonetheless, he indicated that he will post any substantial changes if need be.
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