Despite being known for its volatility, Bitcoin (BTC) has been quiet in its struggle to hold the $20,000 level after the June sell-off. So, will BTC finally recover? Or is there a bigger drop next? Here are the expectations of analysts…
Expert: If Bitcoin loses $20,000, $14,000 is next
While the total value of the crypto market has dropped below $1 trillion, it still cannot hold onto a certain point. To make matters worse, there have been reports of Three Arrows Capital (3AC) going into liquidation. As we reported on Kriptokoin.com, Singapore-based 3AC is one of the crypto hedge funds that are having a hard time amid this crypto meltdown. Bitcoin is changing hands below $20,000. Fairlead Strategies founder and managing partner Katie Stockton made the following statements regarding BTC in a note this week:
Bitcoin stabilized after reacting to short-term oversold indicators last week. It supported a short-term neutral bias within a long-term bearish bias. Medium and long-term momentum is still strongly negative. Looking at the technical levels, the support zone between $18,300 and $19,500 is crucial to hold. Otherwise, a move to $14,000 looks likely. Secondary support is near the 2019 high at $13.9k.
Stockton says “$500” for Ethereum
Initial resistance is near $27,100, but Bitcoin does not seem to be trending to reach this level in the short term. “It will likely take several months for the long-term ‘buy’ signal in Bitcoin to be recorded,” Stockton added. Meanwhile, Ethereum’s next level of support could be below $500 if the current levels fail to hold. Stockton uses the following expressions:
The next support for ETH is near $490, a minor level based on the September 2020 high. More important support is at around $363. Previous support ($1,733) resistance level… Like Bitcoin, ETH has been oversold from a long-term perspective. But a fairly recent downtrend in long-term momentum supports a long downtrend.
Altcoin Sherpa points to $16-20k range in BTC
On the other hand, Altcoin Sherpa examined the charts of the two largest cryptocurrencies by market cap. Altcoin Sherpa said it is tracking Ethereum (ETH) at around $975 to $1,425. He warned that further capitulation could drop the coin to $600.
Looking at Bitcoin (BTC), the coin is trying to recover after a month where it lost about a third of its value. The analyst says he is looking for $16,000 to $20,000 as a potential support zone. The analyst uses the following statements:
It is not yet clear whether this will continue to remain the so-called bottom. But if this is the bottom, we will see a lot of change in the $16,000 to $20,000 area. Bottoms often take a long time to form and… Basically, I expect a lot of volatility before I find a bottom. Then I expect it to vary over a fairly long period of time, weeks and months.
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