Crypto analyst Gargoyle has advised traders not to buy Bitcoin until it sees a surge in trading volume, which could signal the bottom of the market. This comes after Bitcoin recently dropped below the key $80,000 level, putting the leading cryptocurrency at risk of further decline.
Analyst Warns Against Buying Bitcoin Until Bottom Is Confirmed
In a post on X, Gargoyle recommended against buying Bitcoin until the bottom is clearly confirmed. He explained that Bitcoin typically bottoms out when there’s a huge spike in volume, and that hasn’t happened yet. He pointed to the 2022/2023 cycle, where a major capitulation spike marked the bottom for BTC.
Right now, that kind of spike hasn’t occurred. Bitcoin’s volume is still moderate, which suggests that investors aren’t truly panicking yet, despite the ongoing downtrend. Gargoyle also noted that the biggest sell-off usually happens after retail investors think the worst is over for BTC, leading to a volume spike as people finally give in.
The chart he shared suggests Bitcoin could drop to around $45,000 before hitting its bottom, possibly between now and early next year. After that, BTC could reverse and aim for a new all-time high (ATH).
Bitcoin had rallied to as high as $83,000 over the past week, giving some hope that the bear market might be over. But it has since fallen back below $80,000, raising concerns that the downturn isn’t finished yet—just as some analysts, like Doctor Profit, had warned. He previously said that BTC would likely bottom between September and October this year, based on historical patterns.
Bitcoin Could Fall If the Stock Market Crashes
Crypto analyst Colin warned that the current stock market rally is the only thing keeping Bitcoin afloat. He noted that in the short term, the S&P 500 looks bullish after breaking out of a megaphone pattern. But over the long term, the economic outlook isn’t good for stocks—or for BTC.
Colin pointed to rising CPI and PPI figures, with inflation increasing due to the U.S.-Iran conflict. He said this isn’t the right environment for a Bitcoin “super cycle,” as some bulls are claiming. The market is also starting to price in a possible rate hike this year, which is bad news for the leading crypto. Given the weak macroeconomic picture, Colin suggested that BTC will crash if the stock market takes a significant hit in the future.
At the time of writing, Bitcoin is trading at around $79,000, down more than 2% in the last 24 hours, according to CoinMarketCap.
Featured image from Getty Images, chart from TradingView.com
Frequently Asked Questions
Here is a list of FAQs based on the headline An analyst says you shouldnt buy Bitcoin until this happens
BeginnerLevel Questions
Q I keep hearing that an analyst says I shouldnt buy Bitcoin yet Whats the big event Im waiting for
A The analyst is likely waiting for Bitcoin to drop below a key price level or for a specific market signal such as the death cross or a major selloff before it becomes a safe buying opportunity
Q Does this mean Bitcoin is a bad investment right now
A Not necessarily It just means the analyst thinks the price might fall further soon They suggest waiting for a lower price to buy so you get more for your money
Q If I dont buy now will I miss out on profits
A Possibly but the analysts advice is about avoiding risk If you buy now and the price drops you could lose money Waiting for the signal is meant to help you buy at a safer lower point
Q Whats a death cross and why does it matter
A A death cross happens when a shortterm moving average crosses below a longterm one Its a bearish signal that often predicts further price drops The analyst might be waiting for this to pass before buying
Q Is this advice just for beginners or do experts follow it too
A Both Many traders use these signals to time their entries However longterm investors often ignore shortterm warnings and just keep buying regularly
Advanced Questions
Q What specific price level or indicator is the analyst likely waiting for
A Common signals include a drop below the previous cycle low a capitulation event or the Bitcoin Fear Greed Index hitting Extreme Fear They want a clear oversold signal
Q Could the analyst be wrong and Bitcoin rallies before that event happens