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Despite Bitcoin making significant gains in recent days, one analyst believes it will plunge to $14k. Earlier this week, BTC went through some rough times before giving the bulls something to cheer about. Despite Coin Trading Above the $20k Resistance, Popular Trader Il Capo by Crypto believes it will not hold this position for long.
General sentiments around bitcoin are positive and investors are optimistic that the price will continue to rise. However, there is a lot of uncertainty about how far the price can rise.
Analyst sees BTC plunge to 14k soon
Crypto’s Il Capo, a popular crypto swing trader with over 500,000 followers, shared some bearish sentiments about the coin. In his tweet on October 5, he said Bitcoin would hit a local high between $20,400 – $20,100. After that, it shows bearish signs and tilts to new lows.
20500-21000 has not been touched and there is no ltf distribution. Expect the final leg up soon. Then ltf signs bearish, and reversal to new lows (14k-16k). – Il Capo from Crypto.
At the time of writing, Bitcoin has still not crossed the $21.4k mark and is currently trading at $20,035. It has also recorded a 1.48% drop in value since yesterday. The cryptocurrency’s market cap stands at $383 billion.
Other experts think differently
On October 4-5, Bitcoin (BTC) showed strength by breaking the $20,000 barrier after gaining 5% on the day. Some investors speculate the market rose to $28,000 after the move liquidated $75 million in leveraged short (bear) positions. According to Moustache, the descending channel continues to exert its pressure. However, there may be enough strength to challenge the upper channel trendline at $21,500.
The price movement on October 4 coincided with better conditions for global equity markets. The S&P 500 index rose 3.1% and the tech-heavy Nasdaq Composite climbed 3.3% over the same period.
Surprisingly, morale soared amid job vacancies in the United States decreasing by 1.1 million in August. The drop was the largest since April 2020. This indicates that the aggressive monetary tightening by the US Federal Reserve could end earlier than expected. Bitcoin may have breached the $20,000 mark due to widespread optimism. However, this does not mean that institutional investors are satisfied with the current price.
Now what for Bitcoin?
It seems that Bitcoin is going through a phase where it is consolidating. There is a possibility that the price will fall back to $19,000 if the bears try to take control. If this happens, we may see a retest of the $14,000 level, as Crypto’s Il Capo suggested. Conversely, if the bulls manage to push the price higher, we can witness another run towards the $25,000 level.
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Featured image from Pixabay and chart from TradingView.com