Has Bitcoin (BTC) reached the bottom of this cycle at $61k?

Bitcoin's ongoing correction may be coming to an end and the market may experience a rally in the coming weeks, according to an anonymous cryptocurrency trader's analysis by TED.

According to their Twitter account, if history repeats itself, bitcoin's bottom for this correction could be in the $61,000 range.

Bitcoin down at $61K

Teddy explained that every correction in this Bitcoin (BTC) bull run ended by resting on the asset's 21-week Exponential Moving Average (EMA). The EMA is an indicator that tracks asset prices over time, giving more meaning to recent data points that are more relevant than older data.

It should be noted that the EMA reacts more quickly to price changes than the simple moving average, the indicator.

As BTC has a history of breaking out of the EMA, Teddy believes that the leading cryptocurrency could soon drop to $61,000. At the time of writing, BTC was trading at $61,500 after falling below $61,000 to touch $60,900. Whether Teddy's predictions come true remains to be seen.

More dip loams for BTC

Some reasons suggest that the market may be in for more bloodshed soon, as members of the crypto community believe such is imminent.

Last week, CryptoQuant showed the lack of bullishness in the crypto market as seen by the low stable coin liquidity and the weak growth of demand for BTC from large investors. Analysts at the crypto intelligence platform also noted that whale demand for bitcoin is growing by 4.8% month-on-month, traders are still reducing their holdings and the stablecoin recorded its slowest pace since November 2023.

Additionally, US BTC and ETH investors experienced weak demand growth, one of the main driving forces during the rallies. Reflecting the magnitude of this demand, the US spot Bitcoin exchange-traded fund (ETF) market has experienced steady inflows since June 13.

CryptoPotato reports that BTC may lose more value as miners have yet to catch up. As operational costs, hash rates and pressures continue to rise, Bitcoin miners continue to release their assets. Analysts expect weak miners to “die” and recover hashrate before BTC continues its northward movement.