James Check, a well-known on-chain analyst, said that Bitcoin has shown textbook bottom formation characteristics on multiple indicators, and trading prices have historically preceded significant recoveries. However, time, rather than price, may be the greater test for Bitcoin bulls.
On Tuesday morning, as Bitcoin plummeted to $63,000, Check wrote: “Every mean reversion model from technical to on-chain is trading within bottom-forming levels, which typically follow price capitulation events (such as December 2018 and June 2022).”
“Either Bitcoin is dead and no longer meant to recover, then all your models are broken,” the examination continued. “Or you should just ignore the shorts… and quietly dollar-cost average [and] Start stacking from here. “
While Check acknowledges that it is possible and even possible that Bitcoin’s price could fall further, now is the time for key factors to come into play. He is reminiscent of the brutal 2022 Bear market. People remember prices as low as around $15,600 in December of that year, but Bitcoin essentially bottomed six months ago at around $17,600. All that’s left is waiting, and then the final liquidity flush (around the FTX collapse).
“This is essentially Bitcoin’s de-risking setup,” Check concluded. “If you’re not actively accumulating Bitcoin now, then when?”
