what next Bitcoin (BTC/USD) broke below its long-term psychological level at $19,000? According to one cryptocurrency analyst who predicted the 2021 crash, the price of bitcoin is $13,000. The pseudonymous analyst told his 618,400 Twitter followers to expect an “ultimate atom,” which could see even altcoins tank by 30-40%.
It is not only the popular analyst who is anticipating the decline of Bitcoin. JP Morgan Analyst Says Bitcoin Will Reach $13,000 in the wake of Alameda and FTX trouble. Strategists believe that the number of entities with strong balance sheets is shrinking under the liquidity crisis. The comments came after Binance dropped the anticipated acquisition of FTX.
Bitcoin has been particularly under pressure due to increasing investor concerns about speculative assets. Earlier, the collapse of crypto lenders such as Voyager and Celsius gave rise to similar market sell-offs. With the macroeconomic crisis and high inflation, investors may consider riskier assets to be a bad bet.
JP Morgan says that the crisis of confidence in the market is getting resolved. Analysts say that since FTX was earlier cleared for the quality of its balance sheet, the new troubles hit investors differently.
BTC In A Relief Rally After Falling Below $19,000
From the daily chart, BTC is enjoying a relief rally after touching lows below $16,000. The relief gains came after US annual inflation rose to 7.7% in October. The rate was below the 7.9% estimate. The projected price benefit below re-stimulates discussions that the Federal Reserve may slow rate hikes in the future. Will BTC sustain the rally and defy the estimated $13,000 price?
Source – TradingView
Despite the relief rally, a drop below $19,000 strengthens the bear case for Bitcoin. If bear sentiment persists, the current rally could be contained in resistance.
Possible price action could include a further price move followed by a sharp selloff near the $19,000 level. This would open BTC to a potential support of $16,000 and a downside risk to analyst estimates of $13,000.
When to buy bitcoin?
Bitcoin is bearish despite relief rally. Investors should buy the cryptocurrency once the price has settled at the appropriate support. A breakout above $19,000 could also attract buyers.
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