Bitcoin Could Plummet
The crypto market has suffered huge losses since May 2022. After the Federal Reserve announced and started rate hikes, prices fell due to selling pressure. Many crypto investors and operators of various solutions have faced various crises of market movements.
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But the end doesn’t seem near yet. Even now that the Merge date has finally arrived, analysts are predicting a price drop for Bitcoin. Judging by past market movements, a drop in BTC price causes altcoins to plummet and vice versa. So this analysis is not what investors expect.
CAPO Reveals Bitcoin Bottom
Popular crypto analysts under the pseudonym Capo with 517,100 followers have predicted that BTC could fall between $16K and $14K before bouncing back. Capo believes that this price, which signals a 21% and 31% price cut, will be the main downside if the key support level falls.
Other clues from Capo show a possible BTC bounce to $23K from his current price of about $20K price level.
capo stated: that this price could cause Bitcoin to bottom out towards the predicted price levels. The analysts also pointed out that BTC’s current pivot is $21K. If it makes a clear break below that level, it will drop to $19K.
A break below $19K will push the coin towards its target of $14K to $16K, the latest low.
For now, the BTC price could rise to $23K, but Capo advised Twitter followers not to be optimistic.
Capo analyzed BTC’s recent price of $20,122.54 from its August high. The result shows a 10% loss leading to the following prediction that Bitcoin could reach a resistance level between $22.5K and $23K.
The resistance zone, as noted above, may lead to a lower high or a quick swing towards $23K. As a result, Capo sees an opportunity to go short as the move will still be bearish.
Recent events may bring forward Capo predictions
Recent Bitcoin news states that miners are moving their BTC holdings to exchanges.
Data shows that miners moved 10.4537 BTC every hour from September 14. Such huge moves were recorded between July and August 2022 before BTC fell.
CryptoQuant Analysts to predict that the current move will lead to price volatility beyond what the market has registered.
The transfer of BTC shares to spot exchanges usually indicates a willingness to sell. As a result, supply will exceed demand, causing a drop in price. Analysts linked the miners’ action to today’s Merge, Sept. 15.
Many analysts had predicted a turbulent market after the merger. So it is likely that Bitcoin miners are preparing for such situations.
Featured image from Pixabay and chart from TradingView.com