The largest cryptocurrency’s performance over the last few days has been dismal. It attempted to recover from last week’s big drop by repeatedly challenging the $50,000 level, but to no avail.
Its inability to break over $47,500 had pushed it down to roughly $47,500 yesterday, when the US Bureau of Labor Statistics announced the highest inflation rate in nearly 40 years, at 6.8 percent.
According to the Labor Department, the consumer price index jumped 6.8% in November from the same month a year ago, the fastest rate since 1982 and the sixth month in a row that inflation above 5%.
$69K not the highest point of the cycle
Based on the crypto asset’s current valuation and historical data, quantitative crypto analyst Plan B believes Bitcoin (BTC) has yet to reach its top this cycle.
Plan B tells his 1.6 million Twitter followers that he doesn’t believe Bitcoin’s all-time high (ATH) of about $69,000, which was hit a month ago, represents the end of the cycle.
He doesn’t believe $69K was the highest point in this halving cycle. A bear market, according to the prominent expert, would normally drive the price of BTC far lower.
If $69K were the high, he believes a standard bear market -80% decline would bring the bottom to $14K below the 2017 ATH ($20,000) and the 200-week moving average ($18,000.)Moving averages are technical indicators that create a constantly updated average price to help investors and traders smooth out erratic price data.
PlanB does not see Bitcoin falling so low, based on its 200 weekly moving average (WMA) and current price. However, the largest crypto asset by market cap is still trading at almost 240 percent above the potential $14,000 bottom and 138 percent above PlanB’s 2017 ATH.