Mark Newton – technical strategist at the investment insights firm Fundstrat – is not convinced that Bitcoin has reached its bottom. He claims there is a significant chance of a “final washout” style event that could take the top cryptocurrency as low as $12,500.
One Last Crash?
As Newton explained in a note to Bloomberg on Tuesday, short-term technicals are pointing to an “above average chance” of a washout style prince plunge before Bitcoin bottoms. This level, which he suspects could be between $12,500 and $13,000, “should be an excellent place for intermediate-term buyers to add to longs,” he wrote.
Despite remaining steady throughout the latter part of last week, Bitcoin’s price dipped to $19,827 early on Wednesday. Its price now tightly fluctuates around the $20,000 level – support that Bitcoin bulls hope to continue holding. This follows a failed attempt to break $22,000 on Sunday, which has since been followed by a steady downward retracement in price.
As is typical, altcoins have suffered worse losses. Coins like Solana, Avalanche, and Shiba Inu are all down over 8% over the last 24 hours, according to CoinGecko.
Sentiment across the Bitcoin community is mixed as to where the asset’s price could go next. On Tuesday, popular Twitter price analyst Plan B surveyed his followers on where they believed the bottom would “be in”. The respondents’ answers were fairly distributed, ranging from Bitcoin’s latest bottom of $17,600 to predictions below $10,000.
The most common prediction, however, was that Bitcoin would bottom somewhere between $10,000 and $15,000 – where Newton expects.
Negative Headlines to Resume
Craig Erlam – senior market analyst at Oanda – also believes Bitcoin’s relative calm last week may be short-lived. If so, he expects “the stream of negative headlines over the last couple of months,” to resume.
“I fear more may follow in the weeks ahead and I wonder whether the community does too, given its inability to get any traction above $20,000,” he said.
Such negative headlines include the multi-billion dollar Terra collapse turned global-scandal in May, which has now caught the attention of the global hacking collective Anonymous. Others include the looming insolvency of multiple crypto platforms like Celsius, which have been forced to freeze user withdrawals to fend off liquidation.
The most recent bear market scandal pertains to the crypto exchange CoinFlex, which is now embroiled in a consequential dispute with Roger Ver over who owes money to whom.
FTX CEO Sam Bankman-Fried also suspects more bearish news, recently claiming that multiple crypto exchanges are still “secretly insolvent.”