Bearish scenarios for Bitcoin, which retreated with global markets, increased. We mentioned in our previous analysis that we are at a technically critical level. Many analysts think that $40,000 is a psychological level and breaking this level will dampen risk appetite for a while.
$40,000 is important, said Gareth Soloway, chief market strategist at InTheMoneyStocks.com, which provides technical guidance to investors investing in equity markets.
Speaking to Kitco News, the strategist stated that if Bitcoin breaks the $40,000 level, it may enter a downtrend that will continue up to $18,000. Soloway also thinks that if Bitcoin regresses to these levels, this will be the bottom.
Stating that unless the $ 65,000 level is broken or there is a real bottom, Bitcoin will not be able to regain its previous upward momentum, and said:
“Bitcoin will not regain its bullish momentum unless it sets a new record ($65,000). The technical level I’m watching right now is $40,000 to $41,000. If these levels are broken, the price will go as low as $30,000. Long-term, I think we’ll eventually get to the $18,000 to $20,000 level.
The correction did not come as a surprise to us, we were predicting that the Evergrande crisis could affect Bitcoin as well as the global markets. Although it has entered a bearish momentum in the short and medium term, we think Bitcoin will rise excessively in the long term.”
*Not Investment Advice.