A widely followed analyst has expressed his concerns about Bitcoin (BTC) bearish bias as the leading cryptocurrency continues to consolidate.
Analyst says Bitcoin (BTC) could drop as much as 38% from current price statedbut stated that a critical level of support must be lost for this.
“For BTC, this area is essentially where I’ve been wanting to see the price touch for the past two months.
*IF* we go back to the range below that, *then* it is very likely to drop back to $19,000 – $20,000 and $22,000 – $23,000 as we’ve seen with similar setups. (…)
Altcoins are also back to their November lows.”
At press time, Bitcoin is trading at $26,225.
Pentoshi also thinks there are a number of negative factors that could trigger this bearish trend he expects. Accordingly, the popular trader mentioned the possibility that the US Department of Justice (DOJ) could be the next institution to sue the crypto exchange Binance. If the DOJ sues Binance, the uncertainty in the markets may increase and panic selling may occur among investors. This, in turn, can lead to a decrease in the value of the Bitcoin price. The analyst also said that the stock market may also go into a correction after the rally in the last few weeks.
“There are a few things to consider. The crypto market has suffered mostly because of these. (…) The cloud overhead is the DOJ (consider this as the probability of action in the near term is very, very high). I think this is basically exact.
SI think the possibility of the &P 500 index/Nasdaq to top is over.”
Looking at the S&P 500 outside of Bitcoin, Pentoshi also predicts that the index will likely correct in the next few weeks as it approaches a key resistance area.
“I think we’ll pull back towards 4,300 in the next few weeks. There seems to be a local weariness that is emerging.”
You can check the price movements here.