Over the last few weeks, we have been hesitant to label the low at $17,585 reached on June 18th as the bottom for Bitcoin’s price. We did however conclude that all the criteria for a BTC bottom had been met.

Bitcoin and ETH gained ground on the first day of the Federal Reserve’s FOMC meeting. The meeting will conclude on Wednesday when a second consecutive rate hike of 75 basis points is expected to be announced. This will likely drag down the prices of a lot of things including cryptocurrencies.

Bitcoin is currently trading flat on the day at approximately $23,160 as of 4:30 ET and still holding above the crucial 200-week SMA. Current prices also are above the 50-day SMA after dipping below this indicator earlier in the trading session. The dip was likely brought on by Tesla’s second-quarter holdings revealing it had liquidated 75% of its BTC from its balance sheet.

While the spotlight this weekend was on the capo of the Cryptonio crime family Ethereum known on the streets as little Tony evil, the godfather himself Sammy the bull Satoshi is making a comeback to remind everyone who is in charge.

Over the past few months, the cryptocurrency sector has been plagued with headlines of huge corporations going insolvent and losing their investor's funds. Such as Three Arrows Capital, a Singapore-based hedge fund that held a huge presence in the crypto space going insolvent while still in substantial debt.

Although BTC has found temporary support at approximately $20,000 the odds are stacked against the world’s oldest cryptocurrency finding a true bottom at this price point. Currently, as of 3 PM, ET Bitcoin is trading at around $20,600, which is where we entered our last trade, which unfortunately ended in a loss last week when on Friday Bitcoin’s intra-day high exceeded $22,000.

Bitcoin has resumed its downward trend and as of 4:45 PM, ET is trading lower by almost $1,300 or (-6.38%) at $18,880. It broke through support which was the 2017-2018 high of $19,660 and seems destined to trade to the 2019 high at $13,880.

“We are in the midst of the fifth of these parabolic cycles. The first rule has already been met when in December 2020, we traded above the previous record high ($20,00), and the monthly candle doubled in size. However, the final two characteristics point to the possibility that Bitcoin has yet to fully correct from the current record high in the market.

Bitcoin seems like it could have made its bottom seeing as it did hit our minimum target of $17,770 which represents the 78% retracement and has had a slight bounce off that level. The retracement used stretches from the lows of the covid crash ($3,825) to the all-time high ($69,000).

Bitcoin is simply doing what it has always done, after every parabolic rally going back to 2011 when BTC shot up from roughly $0.50 to $32, there was a correction that followed which wiped out at least 78% - 86% of the gains before another bull cycle began.