The scary pattern Bitcoin could send under $ 10,000, according to this top money manager
Navellier & Associates founder Louis Navellier predicted that Bitcoin could suffer an 80% fatigue correction.
The Federal Reserve’s cut of its bond-buying program will be the biggest headwind for crypto, according to the leading crypto regulator:
The Fed is tightening, and this will create a correction for risk assets, which is one of the bitcoin. The tighter the Fed, the more volatility we should see in both stocks and bonds – and yes, bitcoin as well.
Bitcoin has been range pegged for the past two weeks and has failed to cross the $ 59,000 resistance seven times in the past two weeks.
As of press time, the leading cryptocurrency is changing hands at Bitstamp at $ 56,676. It’s about 17.5% below its all-time high.
A creepy model
Navellier believes Bitcoin could eventually make a dreaded double high if it continues to slide down.
A drop below the top cryptocurrency’s $ 28,500 mark will be a big sign for the bulls.
In such a case, a double-top formation would be confirmed and Bitcoin would be on the verge of breaking into the four-digit range again.
While such bearish predictions may sound extreme, it is not unless Bitcoin has a massive drop rate. In December 2018, it saw an 84.5% correction from the previous bull market high of around $ 20,000.
Such a correction would be in line with Bitcoin’s previous halves:
I would consider a dip below $ 46,000 (200 day moving average) as a yellow flag and a dip below the spring lows of $ 28,500 to become a full big double top. This resulted in a drop below $ 10,000, which would happen to equal many of the 80% + drops in its class history.