The cryptocurrency market has seen massive losses ever since May 2022. Prices plummeted due to selling pressure after the Federal Reserve declared and began interest rate increases. Market moves have caused many crises for crypto investors and divers solution providers.
However, it appears that the end may not be near. Although the Merge date may finally be here, experts predict a Bitcoin price drop. Based on past market movements, an increase in BTC prices causes altcoins’ price to fall and vice-versa. This analysis does not reflect what investors are expecting.
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CAPO reveals Bitcoin bottom
With 517,100 followers, Capo is a popular crypto analyst who predicted that BTC could plunge to $16K-14K before rebounding. Capo thinks that this price will indicate a 21% or 31% price drop, and it would be the main target for its downside if the support level drops.
Capo also points out a potential BTC bounce of $23K to its. Current price is around $120K price level.
Capo statedThis price could lead to Bitcoin reaching its predicted bottom price. Also, the analysts pointed out that BTC’s current pivot is $21K. It will drop to $19K if it breaks below this level.
If the price falls below $19K, it will propel the coin toward its target of $14K to $16K.
The BTC price may rise to $23K for the moment, however Capo warned Twitter users not to be bullish.
Capo analyzed BTC’s recent price of $20,122.54 from its highest point in August. It shows that Bitcoin lost 10%, which leads to the prediction that Bitcoin could target a resistance level of $22.5K or $23K.
As indicated, the resistance zone could result in a lower high, or even a rapid swing up to $23K. Capo can see an opportunity for shorting, as the market will continue to be bearish.Source: BTCUSD Price Chart from TradingView.com
Capo Predictions Could Be Boosted by Recent Events
Latest news regarding Bitcoin: Bitcoin miners move their BTC holdings onto spot exchanges.
According to data, miners had moved an average of 10.4537 BTC per hour as of September 14th. These massive movements were made between July 2022 and August 2022, before BTC was lost.
CryptoQuant analysts believe that this move will cause price volatility to go beyond the level of the market.
Transferring BTC to spot exchanges is usually a sign that you are willing to sell. The result is that supply will outstrip demand and a price drop. The analysts linked the miners’ action to the Merge today, September 15.
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Numerous analysts predicted that the market would be volatile after merger. So, it’s likely that Bitcoin miners are preparing for such situations.
Featured image taken from Pixabay. Chart from TradingView.com