A widely followed crypto asset trader and analyst is warning that Bitcoin (BTC) has the potential to plummet by over 30% from the current price if a key support level crumbles.
Pseudonymous crypto analyst Capo tells his 517,100 Twitter followers that Bitcoin’s main downside target lies between $16,000 to $14,000, a drop of between 21% and 31%.
While warning that Bitcoin could bounce to $23,000 from the current levels, the analyst says that the largest crypto asset by market cap is likely to bottom out once it hits this downside target.
“Current pivot is $21,000. Clean break below here, and $19,000 is next. Break $19,000, and it goes to the main target of $14,000 – $16,000 for the last low.
It can still go to $23,000 to wreck early shorts, but I wouldn’t be bullish here.”
Bitcoin is trading at $20,196 at time of writing.
Amid Bitcoin’s recent drop of approximately 10% from a high reached last reached in August, Capo says that the flagship crypto asset could jump to a resistance area located between $22,500 and $23,000.
“BTC before and after:
Perfect rejection from the resistance zone ($22,500 – $23,000)
Currently sitting at support. We could see a bounce to form another lower high, or a quick swing failure pattern to $23,000, but it would still be bearish.
Every bounce is a short opportunity.”
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