- Bitcoin price was last seen at $26,986, a 24-hr drop of 12.7%.
- According to a crypto analyst, Bitcoin price is in a distribution phase.
- The distribution zone is between $37,600 to $21,750.
The crypto market is currently experiencing the worst since the pre-pandemic bull run of 2020, which was also the year that Bitcoin shattered its all-time high (ATH) of $20,000. Now, the situation appears to have turned upside-down, with Bitcoin price falling headfirst to $26,986, as per CoinGecko.
The last time Bitcoin touched $27,000 was in December 2020 (source: TradingView)
As seen on the chart above, Bitcoin never touched $27,000 during the entire bull run of 2021. Even during its accumulation phase from May to August, Bitcoin remained above $28,000. So, for Bitcoin to touch as low as $26,900 today, there has to be a massive exodus of bullish positions beyond comprehension.
However, one trader with the Twitter (NYSE:TWTR) handle @Nebraskangooner attempted to make sense of what is happening. Also known as ‘Gooner’, he is an advisor for PrimeXBT and a content partner of Bitget.
According to Gooner, Bitcoin price is now in a distribution phase. For the sake of the uninitiated, the distribution phase is the opposite of accumulation. This is the stage where holders are exiting their position to salvage whatever value they can extract from their assets. In short, a lot of people are selling bitcoins, including whales and some long-term holders.
#Bitcoin history lessonLast time this breakdown into distribution zone occurred price dropped straight down to the 0.786 Fibonacci (currently at $21k) before bouncing back up to the 0.5 Fibonacci (currently at $37,600)
History doesn’t always repeat but it is often worth noting https://t.co/3xmYZ8Wz0C
— Nebraskangooner (@Nebraskangooner) May 12, 2022
Gooner also compared the 2022 bear market to 2019, claiming that the former is identical to the latter. Should his observation become true, then $37,600 until $21,750 is the distribution zone. If this happens, then Bitcoin has a possibility of dropping in price to $21,000.
The bright side is that $21,000 is the accumulation phase, which is where the market is predicted to be dominated by buyers who believe they are buying BTC at a discounted price.
If Gooner is correct, then it means one thing: the price of Bitcoin will continue to worsen in the coming weeks before it gradually improves.