Critical Warning From Analyst Who Knows Bitcoin (BTC) Crashes
While the market focuses on the Ethereum (ETH) Merge update, Bitcoin (BTC) continues to move in a vicious circle.
A widely-followed analyst has claimed that Bitcoin (BTC) could face a drop of over 30% from its current price if key support levels are lost. The analyst, known in the market as 'Capo', told his 517,100 Twitter followers that Bitcoin could plunge 21% to 31% to $16,000 to $14,000. According to the analyst, the bottom has not yet been seen in Bitcoin. If BTC cannot hold the $19,000 level, it could fall as low as $14,000. Stating that Bitcoin still has a chance to rise to $ 23,000, the analyst emphasized that this possibility is weak. Bitcoin is currently trading at $ 20,151.
The strategist said that $22,500 will be the critical resistance point in this process. According to the analyst, even if BTC reaches these levels, the ongoing selling pressure in general still poses a risk. On chain analyst Willy Woo also claimed that Bitcoin has still not reached the floor level. The expert believes that BTC is far from this level. Claiming that in previous bear cycles, BTC fell 61%, 64%, 57% to the bottom after falling 57%, the analyst pointed out that BTC is currently down 52% from its peak. Experts claim that Bitcoin could fall as low as $ 13,000.
Stocks also fell after the consumer price index report for August came in higher than expected on Tuesday. Bitcoin, which is highly correlated with the stock market, also fell sharply. BTC fell nearly 11% to as low as $19,855 on Tuesday. According to economists, the Fed will have to raise interest rates more aggressively to cope with rising inflation. As Bitcoin struggles to hold the $20,000 level, Bloomberg analyst McGlone noted that $20,000 is a good support point.
The expert noted that in previous bear markets, Bitcoin dropped as low as $3,000, but the current bear market is more robust. McGlone, who previously predicted that Bitcoin will trade at $100,000, said that the Ethereum Merge update will have a positive impact on the crypto market. The expert emphasizes that despite the Fed's interest rate hikes, Bitcoin and Ethereum will continue to record value in the long run thanks to updates, institutional investment and other important factors.
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