A trader who nailed the end of Bitcoin’s (BTC) bull market in 2021 is warning that the crypto king is at risk of witnessing more sell-off events.
Pseudonymous analyst Pentoshi tells his 692,900 Twitter followers that Bitcoin looks dangerously close to breaking its immediate support at around $25,000.
[adinserter block="1"]According to Pentoshi, a stock market correction could catalyze the next leg down for BTC.
“The thing is, for BTC and ETH, I feel like there’s strong potential to break these 90-day ranges with the context of the weakness overall in crypto markets and with SPX and NQ likely at or near local tops.
Marked out the two most interesting levels on a breakdown from here.”
Looking at Pentoshi’s chart, a move below $25,000 may push BTC down to around $22,600 first with $20,000 as the last line of support.
At time of writing, Bitcoin is trading for $25,738.
The crypto trader is also watching the price action of Binance Coin (BNB), the utility token of the world’s largest crypto exchange. According to Pentoshi, BNB is likely to break below support at $200 in the coming months.
“We probably find out what lies beneath here soon enough (Q3), and it’s probably ugly.”
At time of writing, BNB is worth $235.66.
As for the broader crypto markets, Pentoshi says that altcoins could continue to lose value despite being down big over the past year.
“Just because something is down 90% doesn’t make it a good buy. Context is incredibly important. Something can fall 90% repeatedly.”
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