On September 13th, the market plunge changed the scenario and the outlook that many analysts and traders were clinging to.
An example of this is the analyst Kaleo, who initially had a bullish stance toward Bitcoin, but has now decided to go the other way.
Kaleo informs his 535,500 followers over Twitter that his earlier stance towards Bitcoin, which was bullish, has changed. He also says that his earlier Bitcoin target, which was $28,000, doesn’t hold any value any longer.
This is because Kaleo now believes that Bitcoin will see a nearly 31% drop from his current trading which is $20,253.
The analyst’s chart resembles that of Bitcoin’s trading in 2021 where BTC was selling above $40,000 before dropping to the $30,000 level. As per Kaleo, if this momentum repeats, the Bitcoin price will plunge near $13,750.
Bitcoin Price To Hold The $18,500 Level
The strategist talks about the consumer price index (CPI) released yesterday, which claims that inflation is now at 8.1%. He also says that after the CPI data was released, even stock markets indicated bearish dominance.
Market participants follow CPI data closely. Over the last month, inflation has gone up by 0.1%, which has sowed a sense of fear among investors and traders in terms of the interest rate hikes by the Federal Reserve.
Further, Kaleo claims that if Bitcoin loses its September’s S&P 500 of
3,886.75 points, things will get worse and will pose a hindrance to the BTC price rise.
The analyst wraps up his analysis by claiming that Bitcoin should hold on to its $18,500 level and if that is lost, liquidation will worsen. He believes that Bitcoin’s accumulation of under $20,000 and Ethereum’s below $2,000 will be helpful in the long term.
He also states that if the flagship currency plunges from here, there won’t be any hope for recovery for a long time.
At the time of reporting, Bitcoin is selling at $20,354 after a fall of 8.42% in the last 24hrs.
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Source: https://coinpedia.org/bitcoin/bitcoin-bloodbath-to-continue-btc-price-to-drop/