- The crypto market has been rocky for the past few days despite hopes that the monumental Ethereum merger would be a catalyst for the recovery.
- Crypto analysts agree that Bitcoin has yet to bottom and could be primed to drop as low as $15,000-$10,000.
If you think the worst is over for Bitcoin, you could be in for a nasty shock. A popular cryptocurrency strategist and trader says the pioneer cryptocurrency needs to go through at least a 30 percent erasure before it can bottom.
Bitcoin has broken a critical support region, raising the risk of a larger correction.
Crypto analyst Il Capo said that the next level of support for BTC appears to be at $19,000 after it fell below $21,000. If prices continue lower and this level cannot be sustained, a decline towards the $14,000-$16,000 range is likely. This would represent a 20 to 30 percent drop from recent price levels.
Current pivot is 21k. Clean break down here, and 19k is next. Break 19k and it goes to the main target of 14k-16k for the last low.
The crypto market’s recent retracement took investors by surprise as prices had surged ahead of the release of August CPI data on Sept. 13. The report that US inflation is spiking rather than falling appears to have outweighed rising excitement over Ethereum’s historic merger into a proof-of-stake security model. As cryptocurrencies crashed, the total market cap fell below the $1 trillion mark again.
According to Capo, bitcoin, which is currently trading just under $20,000, could fall as low as $15,000 before recovering. However, the popular trader added that Bitcoin could do a near-term reversal and rally to $23,000 to “rectify early shorts.” But that would not invalidate the pessimistic outlook.
“Perfect rejection from the resistance zone (22500-23000). Currently sitting in support. We could see a bounce to form another lower high or a quick SFP to 23000 but it would still be bearish. Every jump is a short chance”, Crypto’s Il Capo posited in another tweet.
Crypto’s Il Capo isn’t the only analyst forecasting a low value for Bitcoin in the near-term.
Expect more pain
Statistician and independent market strategist Willy Woo has a more pessimistic view of the market’s guiding light. He believes Bitcoin could continue to plummet before it hits the maximum pain it has experienced during previous bear market bottoms. Woo foresees a sharp bitcoin price correction below $10,000.
It should be noted that past performance or trend of an asset is no guarantee of the future performance of that asset – particularly in the case of top cryptocurrencies as the industry has matured significantly in recent years. However, the general consensus is that a correction is in order.
So expect things to get worse before they get better.
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