Chief market strategist expects Bitcoin to sink ‘another leg lower’ to $12,000

After the cryptocurrency market had lost $165 billion from its market capitalization in a week, Bitcoin (BTC) dropped below $20,000 and is still struggling to pull itself back above that threshold, leading market analysts to try and predict the maiden asset’s future movements.

One of them is Gareth Soloway, the chief market strategist at InTheMoneyStocks.com, who believes that Bitcoin might drop further to a low of $12,000, as he told Stansberry Research’s Daniela Cambone in an interview aired on September 20.

Moving downward or not?

During the interview, Soloway expressed his view that Bitcoin might drop further than its current price:

“I think Bitcoin still has another leg lower to $12,000 to $13,000.”

In his opinion, the Bitcoin heading lower has a lot to do with the dollar because “when you see the dollar continuing to stay 20+ year highs, and it continues to grind up, it just kills all risk assets. (…) Every uptick in the dollar, you’ll see the opposite occurring in the Bitcoin chart.”

That said, he also noted:

“The key for me is continuing to watch this $19,599 level [for Bitcoin] on a daily closing basis. (…) As long as we hover around that level, there’s a small chance that Bitcoin can get some sort of bid if the dollar comes in.”

Back in January 2022, Soloway projected that the cryptocurrency sector might experience ‘a dot-com moment’ soon, but also predicted that Bitcoin could trade at around $100,000 or $250,000 in the next five years. 

Regulation as a good thing

Soloway is also a proponent of crypto regulation, believing that it would be a positive thing for Bitcoin and cryptocurrencies in general, as institutions would feel more confident investing their clients’ money in them:

“By getting regulation out there, you create a framework where these institutions can say ‘okay, now we can play in this field (…) because we know the rules and we feel comfortable investing with our fiduciary responsibility other people’s money.”

Bitcoin price analysis

Meanwhile, prominent crypto trading expert Rekt Capital said that Bitcoin could bottom in the fourth quarter of 2022 due to its behavior historically 517 – 547 days prior to all halving events, adding that Bitcoin could form a bottom within the area between $16,985 and $23,467.

At press time, Bitcoin is trading at $19,338, up 4.72% on the day but still down 12.99% across the previous week.

The market capitalization of the largest cryptocurrency by this indicator currently stands at $370.25 billion, according to the data retrieved from CoinMarketCap.

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