Where is the bottom for Bitcoin (BTC)?
Although he acknowledges that it is possible that the level has already been reached, chain analyst James Check suggested that a true background may not be in its place until Bitcoin suffers a true capitulation event.
That would probably require a decrease in the $ 65,000 area, Check said, calling it the “true market average”, that is, the average cost base for active investors.
At that point, according to Check, who spoke in the TFTC podcast, the average investor can begin to feel the pressure of unrealized losses. Even long -term holders, including those who have maintained Bitcoin for five years, could be underwater. Interestingly, this price level is closely aligned with Michael Saylor’s strategy, which has a similar cost base of around $ 67,500.
Where does the market capitulation take?
Although Check expects a considerable decrease in the $ 65,000 area, it sees strong support in the range of $ 49,000- $ 50,000, those prices that represent the launch of the ETFs in 2024, as well as a market limit of $ 1 billion for Bitcoin. A drop up to $ 40,000 seems unlikely, he said, except for a global recession.
Check also took note of the extended period of “Chopsolidation” in 2024, where Bitcoin was negotiated for months in a wide range between $ 50k and $ 70k, as establishing a solid support base.
