Skip to main content

Bitcoin Fischer Transform Returns To 2022 Bear Levels, Why Max Pain Could Continue For 4 Months

A crypto analyst has revealed that the recent pullback in the Bitcoin (BTC) price has triggered a Fischer Transform indicator reminiscent of the 2022 bear market. Despite its poor performance over the past weeks, the analyst further predicts that BTC could see maximum pain ahead, indicating a significant downturn that could continue for the next four months.  

Bitcoin Fischer Transform Signal Past Bear Market Levels

X (formerly Twitter) crypto analyst Tony Severino has shared a technical analysis highlighting a weekly Bitcoin Chicago Mercantile Exchange (CME) chart with the Fischer Transform indicator plotted below. The analyst highlights that this BTC CME indicator has reached levels not seen since the 2022 bear market, suggesting a potentially overextended downside move.

The Fischer Transform is a momentum oscillator designed to highlight turning points in price. It is used to indicate when prices have moved to an extreme based on recent price action. In the case of Bitcoin, Severino reveals that its Fischer Transform indicator has dropped to -1.96, with the corresponding trigger line at -1.66—all significantly low readings. 

Bitcoin

Historically, similar readings have been observed during significant market downturns, including the famous bear market in 2022, which saw the Bitcoin price fall from all-time highs to drastic lows. The last time the Fischer Transform flashed such lows, BTC was in a prolonged sell-off, experiencing intense volatility and eventually bottoming out before staging a price recovery. 

Given this precedent, Severino now closely watches to determine whether Bitcoin will completely repeat historical trends and record a similar bear market decline. Currently, the price is trading at $83,285, falling more than 20% from its all-time high of over $104,00 this year. 

BTC Price Set For Maximum Pain

In a more recent X post, Severino predicts that Bitcoin is set for maximum pain in this bull cycle. The analyst shared a Bitcoin CME weekly chart with Bollinger Bands and Bollinger Band Width indicator at 32.2, suggesting a period of consolidation and further breakdown. 

The Bitcoin price recently expanded outside the Bollinger Bands, indicating a period of high volatility. The analyst’s chart shows Bitcoin’s basis Bollinger Band price at $94,917, acting as a resistance area before further upside movements.

Severino’s analysis suggests that Bitcoin may remain range-bound for 90 – 120 days before attempting another breakout. He revealed that the pioneer cryptocurrency is expected to spend this prolonged time frame in a deadlock disagreement between bulls and bears. 

Looking at the Bollinger Band chart, the analyst highlights a possible decline to the lower Bollinger Band price of $79,633. If the basis price of $94,917 is exceeded, BTC is expected to hit a new ATH around the upper Bollinger Band price of $110,201. This would represent a price increase of over 30% from its current market value.

Bitcoin

from Bitcoinist.com https://ift.tt/ZFjvAQy
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more