Following the sudden drop in Bitcoin’s price a few days ago, a pseudonymous Bitcoin analyst has predicted that the digital asset could plunge below $20,000. The analyst revealed the bearish forecast shortly after Bitcoin plunged significantly from its all-time high of $42,000 to $35,000, resulting in a $170 billion single-day loss in the crypto market. With BTC’s dominance in the crypto market, its loss also affected other altcoins like Ether (ETH), Litecoin (LTC), and XRP.
According to a Bitcoinist report, the crypto analyst warned:
“If we are going below $30,000, the previous support will turn into resistance… we could fill the H&S pattern’s price target, which could take the price below the $20,000 level.”
In addition, the CEO of CryptoQuant, Ki Young Ju, said that there might be a “second dumping.” In a tweet posted on the 12th of January, the CEO noted:
“Nothing has changed since yesterday. Miners are selling, no significant stablecoins inflows, no Coinbase outflows and 15k BTC flowed into exchanges since yesterday.”
However, BTC is gradually rebounding from losses and currently up 2.74 % to $35,661.
Despite the bearish predictions on BTC, analyst Jonny Moe is bullish on the king coin. The report stated that the H&S pattern may be an Ascending Channel indicator.
Image Credits: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
