A widely followed crypto asset trader and analyst is warning that Bitcoin (BTC) has the potential to plummet by over 30% from the current price if a key support level crumbles.
Pseudonymous crypto analyst Capo tells his 517,100 Twitter followers that Bitcoin’s main downside target lies between $16,000 to $14,000, a drop of between 21% and 31%.
While warning that Bitcoin could bounce to $23,000 from the current levels, the analyst says that the largest crypto asset by market cap is likely to bottom out once it hits this downside target.
“Current pivot is $21,000. Clean break below here, and $19,000 is next. Break $19,000, and it goes to the main target of $14,000 – $16,000 for the last low.
It can still go to $23,000 to wreck early shorts, but I wouldn’t be bullish here.”
Bitcoin is trading at $20,196 at time of writing.
Amid Bitcoin’s recent drop of approximately 10% from a high reached last reached in August, Capo says that the flagship crypto asset could jump to a resistance area located between $22,500 and $23,000.
“BTC before and after:
Perfect rejection from the resistance zone ($22,500 – $23,000)
Currently sitting at support. We could see a bounce to form another lower high, or a quick swing failure pattern to $23,000, but it would still be bearish.
Every bounce is a short opportunity.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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