Cryptocurrencies have started to move sideways again. Markets await key economic data for Thursday as traders step aside. Meanwhile, a famous analyst conveyed his expectation for Bitcoin (BTC) and other cryptocurrencies. Here are the details…
Jim Wyckoff warns of fluctuating trading for Bitcoin
Higher-than-expected producer price inflation data and the minutes of the FED’s September meeting affected the markets. These data deepened concerns that the Fed will continue its aggressive tightening policy. Therefore, financial markets recorded similar trades on Wednesday. The data showcases Bitcoin (BTC) bulls spending the day battling the bears for control near the $19,100 support level. However, it shows that neither side has made much progress as BTC is trading around $18,500 at the time of writing.
The sluggish state of the market was cited by Kitco senior technical analyst Jim Wyckoff. “Bulls and bears are frustrated by the lack of daily price volatility in the market despite increased risk aversion in the overall market,” the analyst said. “Bulls and bears are still generally on a short-term technical playing field,” the analyst said. “This means more sideways and volatile trading in the near term.” Wyckoff used the following statements:
The bulls are disappointed that Bitcoin has not been more attractive as a safe-haven asset over the past few weeks. With prices moving sideways, the bears seem unable to suppress their positions to the downside.
The analyst made a 2018 analogy: Is a drop to $14,000 on the horizon?
No one knows for sure which direction BTC will take in the coming days and months. However, the possibility of a 75 basis point hike by the Fed in November means further decline in the crypto market. One possible scenario of what a pullback might look like was provided by il Capo of Crypto, who noticed a striking similarity between Bitcoin’s currency price action and the price action it saw in 2018, just before it fell from the bottom market. As we reported as Kriptokoin.com, the analyst is famous for knowing about collapses in BTC.
The analyst stood out with his various predictions. Capo previously predicted that Bitcoin would hit a 22-month low. He said that the biggest cryptocurrency could return to $ 16,000. The analyst correctly predicted the price declines in the past periods. He predicted a drop to $50,000 in BTC last year. In 2020, he correctly predicted the $3,500 level in the price of BTC.
$BTC in 2018 vs. $BTC now pic.twitter.com/74cHiRGPkm
— il Capo Of Crypto (@CryptoCapo_) October 12, 2022
Should such a scenario occur, BTC could drop as low as $14,000 before it manages to bounce back and rise. Overall, activity in the global financial markets indicated quite a decline. However, it was pretty flat before that, which often indicates that traders are unsure of what to do. At the close of US markets, the S&P, Dow and Nasdaq were slightly in the red, down 0.33 percent and 0.10 percent and 0.09 percent, respectively. The altcoin market, on the other hand, is having a mixed session with rises and falls.
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