- Bitcoin price losing 13% on Monday, breaks below $25,000 for the first time since December 2020.
- Crypto analyst Justin Bennett predicted a significant pullback in Bitcoin price as crypto market capitalization takes a hit.
- Bennett argues Bitcoin is in the middle of a breakdown from a bearish continuation pattern.
- The analyst sets a downside target of $23,500, a 15% decline from the current price level for Bitcoin.
UPDATE: The most pessimistic Bitcoin price predictions are turning into fulfilled prophecies as the whole crypto market is continuing to see aggravated losses on Monday after an abysmal weekend. BTC price has just broken below $25,000 for the first time since reaching this level back in the huge rally of December 2020. Several reasons are adding up to the major risk-off sentiment dominating most financial markets to put pressure on the cryptocurrency market, including highly leveraged markets, scams and collapses like the Terra one, and other stablecoin pegs under pressure like Tron's USDD. Therefore, the unwinding of such a historic rally continues and the big question is where will Bitcoin and the crypto market bottom out? Popular crypto twitter analyst and trader @RektCapital has a potential answer: the 200-week moving average.
#BTC has broken down from the ~$29000 Monthly support (green)
— Rekt Capital (@rektcapital) June 13, 2022
Next major Monthly level below is the ~$20000 level (orange)
However in between these two major Monthly levels is the 200-week MA which has a good historical track record of marking out bottoms$BTC #Crypto #Bitcoin https://t.co/m76RppBF0T pic.twitter.com/c5dEAt7Ru1
Bitcoin price continues to bleed as crypto market capitalization declines. Analysts believe Bitcoin and altcoins could witness further pullback in the short term.
Bitcoin price is in the midst of a breakdown
Justin Bennett, a leading crypto market analyst, told over 100,000 Twitter followers that the ecosystem could witness significant pullback, wherein Bitcoin and altcoins lose a massive chunk of their value.
Bennett believes the Bitcoin price is in the midst of a breakdown from a bearish continuation pattern, and $1 trillion is a psychological level for the crypto community. The breakdown occurred today, where over 5% of the crypto market’s capitalization was wiped out, and nearly $950 billion was drained out of the ecosystem.
Bennett argues that $1 trillion is the area that offers a crucial support level for the entire crypto market. He was quoted as saying:
[The] $1 trillion [level] was also the most heavily traded level during the early 2021 consolidation.
Crypto market capitalization in USD
Bennett argues that altcoins will take the brunt of the correction.
Bottom line: another 15% lower from the entire crypto market seems likely before we can start talking about the potential for relief. Remember that BTC will be the closest to that -15% mark. Alts, especially lower caps, will probably outpace it by 1.5-2x.
Bennett has predicted a 15% correction in Bitcoin price, where the asset hits a fresh yearly low of $23,500. Altcoins could lose 22.5% to 30% of their value.
Analysts believe Bitcoin price could witness further correction
@BigCheds, a pseudonymous crypto analyst, evaluated the Bitcoin price chart and identified an inverted hammer. The analyst concluded that the pattern is bearish for Bitcoin price and expects a decline in BTC.
BTC-USD chart
FXStreet analysts believe Bitcoin price could decline to the $12,000 level; for more information, watch this video:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.