Analyst Says Bitcoin Could Plummet 30% Before Upward Trends Starts
The crypto market has recorded massive losses since May 2022. After the Federal Reserve announced and kicked off interest rate hikes, prices tanked due to selling pressure. Many crypto investors and operators of diverse solutions have faced different crises from market moves.
But it seems the end is not near yet. Even as the Merge date has finally come, analysts predict a price plunge for Bitcoin. Going by past market moves, a fall in BTC price causes altcoins to plummet and vice versa. So, this analysis is not what investors expect.
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CAPO Discloses Bitcoin Bottom
The popular crypto analysts going by the pseudonym Capo with 517,100 followers have predicted that BTC might plunge between $16K to $14K before rebounding. Capo believes that this price, indicating a 21% and 31% price reduction, will be its main downside target if the key support level falls.
Other pointers from Capo show a possible BTC bounce to $23K from its current price of around$20K price level.
Capo stated that this price might lead to Bitcoin bottoming out to the predicted price levels. Also, the analysts pointed out that BTC’s current pivot is $21K. If it makes a clean break below that level, it will fall to $19K.
A break below $19K will push the coin to its target of $14K to $16K, the last lowest point.
For now, the BTC price might rise to $23K, but Capo advised Twitter followers not to be bullish.
Capo analyzed BTC’s recent price of $20,122.54 from its highest point in August. The result shows a 10% loss, leading to the next prediction that Bitcoin might target a resistance level between $22.5K and $23K.
The resistance zone, as indicated above, could lead to a lower high or a quick swing to $23K. By that, Capo sees an opportunity to go short since the movement will still be bearish.
Recent Events Could Push Capo Predictions Forward
Recent news on Bitcoin states miners are moving their BTC holdings to spot exchanges.
Data shows that miners moved 10.4537 BTC hourly as of September 14. Such massive moves were recorded between July and August 2022 before BTC fell.
CryptoQuant analysts predict that the current move will lead to price volatility beyond what the market has recorded.
The transfer of BTC holdings to spot exchanges usually indicate a willingness to sell. As a result, supply will exceed demand, causing a price plunge. The analysts linked the miners’ action to the Merge today, September 15.
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Many analysts had predicted a turbulent post-merge market. So, it’s likely that Bitcoin miners are preparing for such situations.
Featured image from Pixabay and chart from TradingView.com
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