A widely followed crypto analyst and trader is expressing bearish sentiment on Bitcoin (BTC) as the crypto king continues to consolidate.
The pseudonymous analyst known as Pentoshi tells are 693,000 Twitter followers that Bitcoin could fall by as much as 38% from its current price if BTC loses its immediate support.
“BTC this area [has] was essentially what I wanted to see for the past two months.
*IF* we fall back into the range below, *then* I think $19,000 – $20,000 and $22,000 – $23,000 are very likely as we have seen with similar setups. So that’s a good way to get around this price to management. IF = THEN
Altcoins also back to November lows.”
At the time of writing, Bitcoin is trading at $26,225.
According to Pentoshi, Bitcoin is facing some headwinds that could catalyze the next leg for BTC.
The top trader mentions the possibility that the Department of Justice (DOJ) is next to sue crypto exchange Binance. He also says the stock market is due for a correction after the rally of the past few weeks.
“Here are a few things to consider. Crypto has largely suffered from this.
Do not generate revenue, do not allow companies to make a profit or provide services. No 401Ks/ETFs etc. Combined with a lack of investment power from major allocators due to uncertainty = why weakness.
A few clouds over your head are DOJ (turn this into a very high probability of playing out any time soon). I think it’s basically a certainty.
Possibility of S&P 500 index/Nasdaq topping.”
Looking at the S&P 500, Pentoshi predicts the index will likely correct in the coming weeks as it approaches a key area of resistance.
“In my opinion, we will pull back towards 4,300 in the coming weeks
It feels like some local exhaustion is emerging.
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