Back in March, bitcoin was valued at $48,000. The technical expert Tom DeMark predicted that it might plummet as low as $18,418 during this time while it was at its peak. DeMark is the founder and CEO of DeMark Analytics and an adviser to hedge-fund director Steven A. Cohen. After a tumultuous weekend, bitcoin briefly fell below $18,000, pricing at $20,000 on Monday. It dropped 70% from its peak of $68,924 on November 10th, 2021. Bitcoin’s value has plummeted since the Federal Reserve started raising interest rates.
The number of days, not necessarily sequential, wherein the closure was less than two days before is very important to DeMark’s metrics. When the countdown hits 13, a purchase signal is activated depending on the conditions. (Sell signals are the counterpart of buy signals.) In another way, his research hunts for overvalued and oversold indications. According to DeMark’s study, bitcoin’s price has declined over 50% from its high, causing long-term destruction. Bitcoin has previously held the 50% recovery level during falls. The recovery percentage to be this high seems like an impossible occurrence at this point.
Some good news may be in store for Bitcoin according to DeMark
When a retracement surpasses 56 percent, an upsurge suffers substantial long-term harm. Such collapses indicate that a return to the highs in bitcoin is likely to take several months, if not years. In perspective, it took twenty-five years for markets to surpass the record high of September 1929. However, similar to the stock market in 1929, there may be a rebound. Therefore, this does not rule out the possibility of a 50-56 percent rebound in the coming months, implying bitcoin’s ability to recover to $40,000-$45,000.
Bitcoin registered purchases counting down to 12 or 13 on Saturday, depending on which time system is used. Because this was done over the weekend and on a 7-day schedule, there is a chance that two lower lows may occur in the coming weeks.