Wahid Pesarlay
The Altcoin Daily commentator does not rule out a 50% crash in BTC price from current levels reminiscent of the 2018-2019 bear market cycle
Bitcoin (BTC) could be on track to repeat bear cycle market analyst Aaron Arnold’s bearish market trends of 2018/2019, Kitco News said in an interview.
The Altcoin Daily co-founder and commentator said that BTC’s price action is already reminiscent of the 2018-19 bear market. BTC is consolidating around $19,000-20,000 just as it was consolidating near $6,000 back then.
#Bitcoin is still “highly correlated” with #stocks and could repeat 2018 bear market, plunging another 50%, says @AltcoinDailyio
Watch full interview with @davidlin_TV: https://t.co/OeIeP2Laj9
— Kitco NEWS (@KitcoNewsNOW) October 18, 2022
Therein lies the danger for the current market, he noted. While opinions in 2018 were that BTC had found a bottom, the price eventually fell by 50%. There is a risk that this will be repeated in the current market. He said:
Back then, as far as I can remember, a lot of people thought $6,000 was the bottom. Today many people think that we don’t have to go much further, and usually everyone thinks the same thing.
To sue
Arnold stated that BTC could fall to support at $11,000-14,000 or worse, fall to $6,000. One reason for this is the abundance of bearish indicators in the market. These include high inflation, dollar devaluation, sovereign debt crisis, OPEC oil production cuts, as well as the fact that BTC is still highly correlated with stocks.
Could the current BTC bear market be different?
Contrary to Arnold’s perspective, other analysts have argued that the current bear market has characteristics that distinguish it from previous downturns. In a report, trading firm Cumberland said the current bear market cycle is notable for massive trading volumes that are continuing.
With a daily trading volume of over $50 billion, the company claimed that the market is still healthy despite the price drop. The benchmark crypto could also show signs of decoupling for the stock market, according to a U.Today report.
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