- Bitcoin was recently seen at $26,986, down 12.7 percent in 24 hours.
- Bitcoin is in a distribution phase, according to a crypto specialist.
- The price range for the distribution zone is $37,600 to $21,750.
The crypto market is currently at its lowest point since the pre-pandemic bull run of 2020 when Bitcoin surpassed its all-time high (ATH) of $20,000 for the first time. However, according to CoinGecko, the situation has swung around, with Bitcoin’s price plummeting to $26,986.
During the entire bull run of 2021, Bitcoin never reached $27,000, as shown in the figure above. Bitcoin remained above $28,000 even throughout its accumulation phase from May to August. So, for Bitcoin to drop below $26,900 today, there has to be a massive exodus of bullish holdings that is unfathomable.
However, one trader with the handle @Nebraskangooner on Twitter sought to make sense of the situation. He’s also known as ‘Gooner,’ a PrimeXBT advisor and Bitget content partner.
Bitcoin is presently in a distribution phase, according to Gooner. The distribution phase is the polar opposite of the accumulation phase for the uninitiated. Holders are abandoning their positions at this point to salvage whatever value they can from their investments. In short, many people, including whales and some long-term investors, are selling bitcoins.
Gooner also compared the bear market in 2022 to the one in 2019, suggesting that the two are equivalent. If his prediction is correct, the distribution zone will be $37,600 to $21,750. If this happens, Bitcoin’s price might plummet to $21,000.
On the plus side, $21,000 marks the start of the accumulation phase, during which the market is expected to be controlled by purchasers who believe they are getting a good deal on BTC.
If Gooner is true, Bitcoin’s price will continue to fall in the following weeks before gradually improving.