‘Lipstick on a pig’ could send Bitcoin prices tumbling

After a brief collapse, Bitcoin (BTC) has made a remarkable recovery, but some financial experts are not certain that either the cryptocurrency market or the flagship decentralized finance (DeFi) asset is yet in the clear, expecting them to tumble further down before they can regain their full strength.

Indeed, InTheMoneyStocks.com chief market strategist Gareth Soloway cautions crypto traders and investors not to become swayed by the gains at present, reminding that similar situations have happened before and that more pain could be waiting, as he told Kitco’s Michelle Makori in an interview published on April 28.

According to him:

“[If] you look at the 2018 and 2019 bear markets, [Bitcoin] had bigger rallies than this in percentage terms, (…) and people again seem to forget that, so don’t be fooled, I’ve been through many bear markets, in commodities, in the stock market, in crypto in my trading career and sometimes it turns out to be the lipstick on the pig here.”

$9,000 – $13,000 possible?

Furthermore, Soloway said that he was focusing on the $30,500 level, and “if we do get through that, then I actually think the low is likely in on Bitcoin at $15,700.” On top of that, he believes that Bitcoin “could still roll over and head lower, so I still think there’s a chance for $12,000 to $13,000, maybe even $9,000.”

Additionally, the trading expert warned that the presence of a large number of digital assets “that have no use case” might be contributing to the prolongation of the crypto winter that he believes has “almost been too easy,” expressing concern over these assets “getting pumped on a daily basis” and “just flooding the market and going up ridiculous amounts.”

Bitcoin price analysis

In the meantime, Bitcoin is currently changing hands at the price of $29,223, up 0.90% on the day and gaining 3.42% across the week, adding up to the monthly increases of 7.08%, according to the most recent data retrieved by Finbold on April 28.

Whether Soloway’s predictions come true and Bitcoin actually drops to $12,000 or even $9,000 will depend, not just on historical chart patterns, but also on the general crypto market and macroeconomic sentiment, as well as the developments directly related to the maiden cryptocurrency itself.

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