Analyst Says Bitcoin Could Fall 30% Before Uptrends Begin

The crypto market has recorded massive losses since May 2022. After the Federal Reserve announcement and the start of interest rate hikes, prices fell due to selling pressure. Many crypto investors and operators of different solutions have faced different crises from market movements.

But it seems that the end is not yet near. Even though the Merger date has finally arrived, analysts are predicting a dive in the price of Bitcoin. Based on past market movements, a drop in BTC price causes altcoins to drop and vice versa. So, this analysis is not what investors expect.

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CAPO Reveals Bitcoin Bottom

Popular cryptocurrency analysts nicknamed Capo with 517,100 followers have predicted that BTC may fall between $16,000 and $14,000 before recovering. Capo believes that this price, which suggests a 21% and 31% decline in price, will be its main downside target if the key support level falls.

Other indicators from Capo point to a potential BTC bounce to $23,000 current price around $20,000 price level.

Capo declare yourself that this price may lead Bitcoin to fall to the predicted price levels. Also, analysts pointed out that BTC’s current pivot is $21,000. If it makes a clean break below this level, it will drop to $19K.

A break below $19,000 will push the coin to its target of $14,000 to $16,000, the latest low.

For now, the price of BTC may rise to $23,000, but Capo advised Twitter followers not to be bullish.

Capo analyzed BTC’s recent price of $20,122.54 from its August high. The result shows a loss of 10%, leading to the next prediction that Bitcoin may target a resistance level between $22.5k and $23k.

The resistance zone as indicated above could lead to a lower high or a quick swing to $23K. With this, Capo sees an opportunity to fail, as the movement will still be bearish.

BTCUSD
The price of Bitcoin is currently trading below $20,000. | Source: BTCUSD price chart from TradingView.com

Recent events could advance Capo predictions

Recent Bitcoin news reports that miners are moving their BTC holdings to spot exchanges.

The data shows that miners were moving 10.4537 BTC per hour as of September 14th. Such massive moves were recorded between July and August 2022 before the BTC crash.

CryptoQuant analysts predict that the current move will lead to price volatility beyond what the market has seen.

Transferring BTC holdings to spot exchanges usually indicates a willingness to sell. As a result, supply will exceed demand, causing prices to plunge. Analysts linked the miners’ action to the Merger today, September 15.

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Many analysts had predicted a turbulent market after the merger. So, it is likely that Bitcoin miners are preparing for such situations.

Featured image from Pixabay and chart from TradingView.com

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