Analyst Maps Out Big Targets

The bottom might be just around the corner, said Martinez.

Bitcoin’s price went through a highly volatile and mostly painful ride throughout June, dumping to a multi-year low first at $59,000 before another one at $58,000.

Analysts continue to debate whether this cycle’s bottom has been reached or not, but Ali Martinez recently published a post on his views about the current accumulation zone and whether it’s a proper entry level.

History Says Yes

In the post specifically designated to bitcoin’s 200-week Simple Moving Average (SMA), the popular analyst noted that the asset has rarely traded below it for a longer period. And when it has dipped below it, the subsequent rally has shown that those moments “have consistently marked exceptional long-term accumulation opportunities.”

Since the 200-week SMA currently sits at $63,500, a level that BTC lost earlier this week, Martinez concluded that “This is exactly when you want to deploy a dollar-cost averaging strategy.”

In the more detailed post on BTC’s market structure, though, the analyst admitted that bitcoin trading below the 200-week SMA doesn’t necessarily mean it has bottomed out. In fact, he noted that the asset can still dip further south and outlined potential targets at $54,000 or even $40,000. If that’s the case, investors might want to double down on their DCA strategy, he argued.

“Spreading buy orders across the $58,000 to $40,000 range allows you to build a position while the asset trades at a technical discount.”

Martinez believes $63,500 remains BTC’s most significant level now, as if it registers a “high-timeframe reclaim of the 200-week SMA as macro support,” it would suggest the early stages of a new bull run.

When Bottom?

Each leg down opens the door for analysts to continue the always-hot debate over whether the bottom is in or if more pain lies ahead. Martinez brought up BTC’s historical performance after the aforementioned 200-week SMA came into play. Each of his four examples delivered massive gains after bitcoin tested that level in 2015, 2018, 2020, and 2022.

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As such, he determined that the bottom is “almost in” and outlined the precise gains registered from bottom to top.