Contrary to many market experts, a top crypto analyst took a different view, predicting that the Bitcoin (BTC) correction could end soon.
Recently, Bitcoin has been going through a significant correction. Its price dropped significantly and some investors were predicting a market bottom.
The analyst, who is nicknamed DonAlt in the crypto market, said that Bitcoin is close to reaching the bottom. However, he added that Bitcoin may need to drop more than 20% from its current price before it finds the key support level.
“We are approaching support, but as we drift down, we approach support. I hate this. I don’t want to reach support… I usually think that when you are dragged to support, it can be a temporal bottom, but in such cases there is a possibility to advance to the next support. Currently, the next support below the $24,000 to $22,000 area on such a pullback is just $20,000. So I think the longer the process and the slower we go, the more likely $20,000 will be.”
As it turns out, according to DonAlt, Bitcoin price may still not have reached the key support level. Before BTC reaches this level, it may need to drop more than 20% from its current price. While this decline may be a cause for concern for some investors, DonAlt highlights Bitcoin’s long-term potential, noting that this correction is normal and markets may fluctuate from time to time.
In addition to these, DonAlt also says that he will be happy to accumulate BTC if it reaches $20,000. The trader also said that he is closely watching the $27,400 level for Bitcoin’s future price action.
“But right now, I would like to see any sign of strength on the other possibility, and that would be best seen on the daily timeframe, which basically means just going above $27,400. I think that’s a good measure of strength. Because we are currently trading below the consolidation that leads to the top.”
Bitcoin is trading at $26,317 at the time of this writing, up more than 3.3% in the last 24 hours.
You can check the price movements here.