A popular crypto trader says that these days when crypto markets are facing macroeconomic problems. bitcoin He shared a frightening forecast for the (BTC) price.
Crypto analyst and trader Justin BennettIn the video he shared on his YouTube channel, he stated that the bearish flag pattern formed on the Bitcoin chart signals that the leading digital asset may drop to a price target of around $8,500.
“A model can be seen currently being built. You can see where we have a much smaller bear flag model in development. In this case, the target is just over $8,000 and around $8,500.”
Bennett also suggested that drawing a trendline from 2017 highs to the present day, Bitcoin could drop below $10,000.
“If we draw a trendline from the high of the previous cycle, you can see that from this high here, we have an area of $8,000 to $9,000. Frankly, I don’t think this trend line is very important. However, one thing I find interesting is that Bitcoin puts each cycle on a trendline like this.”
The crypto trader thinks that unlike previous cycles experienced, the crypto market is in uncharted territory as it has never faced such macroeconomic conditions before.
“If you ask me, we should not forget that the bear market we are experiencing is very different from the previous ones. The stock market was rising while Bitcoin and the rest of the cryptocurrency market were having a bear market. Yes, they also dropped occasionally, but generally they were rising.
While such developments are taking place, high inflation and Fed’s rate decisions He was not dealing with such problems. However, what we’re dealing with right now is very different from anything crypto has experienced in the past decade. The Fed continues to tighten as inflation now hits a 40-year high. In fact, it’s executing one of the most aggressive tightenings we’ve ever seen from the Fed.
Moreover, the world seems to be facing a recession. And crypto has never experienced a global recession. He was absent even during the great financial crisis of 2008-2009. This is unlike anything we’ve seen before. We are in uncharted territory.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.