Gareth Soloway, Chief Market Strategist of InTheMoneyStocks has warned that despite Bitcoin’s stabilisation at the start of the week after a devastating sell-off last month, the cryptocurrency might fall further, setting up Ethereum and other digital assets for a deeper correction.
In an interview with Kitco News, the expert said that the negative trend shows no signs of letting up, citing a graphic indicating that Bitcoin had crossed significant support during last week’s equities market sell-off.
After residing inside an upward channel since June, Bitcoin dropped more than 10% on Friday, with the daily candle falling below the channel’s support trendline. According to Gareth, this is a very, very negative pattern development, and he anticipates a retest of the 2017 lows.
While a minor rebound from 2017 high is possible, he cautioned that Bitcoin’s price may still go below $15,000 if it breaks below.
“If we break below there, the next stop will be 12,000 or 13,000; thus, we are heading down.” There will be obstacles along the way,” Gareth continued.
The expert predicted a bitcoin price fall to $20,000 in October 2021, citing unfavourable technical factors on the cryptocurrency’s chart. In his most recent call, he indicated that the next Bitcoin bull run will begin around his objective.
The benefit of 12 to 13k is that it brings us to the 80-85% correction that bitcoin has seen in every single cycle, giving us a baseline for what to expect… It also has solid technical support,” he said.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.