Experts Forecast The New Bitcoin, Ethereum Bottom And It’s Frightening
As stock markets dropped on news of rising inflation in the US and crypto markets reeled from the Celsius news, Bitcoin and Ethereum seem to be falling ever lower and are now near 2020 levels again. Tech stocks did not fare much better, with the Nasdaq dropping 4.7% on Monday, an absolute hammering of various silicon valley greats.
For crypto though, the question rises, is this the bottom or how low can you go? We take a look at the most bearish predictions we’ve seen after a grueling round of forecasts.
The Wall Street Journal yesterday already headlined that Americans have now lost so much money in crypto this year, that lawsuits are expected to be rolling in soon.
Alts outpace Bitcoin drop by 2x
Everyone who’s anyone in the world of crypto had an explanation and a forecast yesterday of course, but we’re mostly focusing on where the new lows are to be found, so that we can at least warn as from which point the sun could potentially shine again. Here are the bears:
Justin Bennett, a famed technical analyst, argued on that altcoins will take the brunt of the correction but also foresees a further 15% drop for Bitcoin itself.
#BTC has broken down from the ~$29000 Monthly support (green)— Rekt Capital (@rektcapital) June 13, 2022
Next major Monthly level below is the ~$20000 level (orange)
However in between these two major Monthly levels is the 200-week MA which has a good historical track record of marking out bottoms$BTC #Crypto #Bitcoin https://t.co/m76RppBF0T pic.twitter.com/c5dEAt7Ru1
In essence, he stated:
Another 15% lower from the entire crypto market seems likely before we can start talking about the potential for relief. Remember that BTC will be the closest to that -15% mark. Alts, especially lower caps, will probably outpace it by 1.5-2x.
In all, that would mean a fresh yearly low for Bitcoin while altcoins are set to lose 22.5% to 30% more as from this point.
Katie Stockton, founder and managing partner of Fairlead Strategies, gave an even more menacing forecast on CNBC yesterday. She claimed that the $18,300 to $19,500 level would be the new support for Bitcoin, which is where her firm would advise clients to put bids. Yikes.
This was still not the most bearish forecast though, as that would one would come from Delta Blockchain founder Kavita Gupta, who expected Bitcoin to find support around $14,000 to $16,000, and that $20,000 would be the new normal trading level.
A the time of writing, Bitcoin trades at $22,000.
Ethereum falls faster
What had been clear for some already was that Ethereum fell faster than Bitcoin since a few days. In the past week, Ethereum lost 30%
The next big level of support is around $1300 (most likely). If the zone between $1300 – $1500, which contains 2018’s previous ATH, does not absorb the current selling pressure, ETH will likely retest the $1,000 for the first time after more than 500 days.
ETH $ETHUSD has met its first downside target. As a swing trader my practice is to take profits at target levels. I have no desire to catch highs or lows, but am satisfied catching chunks in the middle pic.twitter.com/L4VWspbJdy— Peter Brandt (@PeterLBrandt) June 13, 2022
The most bearish outlook for Ether however came from veteran trader Peter Brandt, who claimed that the Vitalik Buterin coin would only find support near the $667 level. That’s still way off.
A the time of writing, Ethereum trades at $1,200.
All eyes on Fed
Fed chair Jay Powell now has the hardest job in the world this week.
Another ten (!) rate hikes priced in between now and the end of the year. Given we only have 4 meetings left, that means at least two 75 bps hikes pic.twitter.com/RSHH1O82Bo— Jack Neele (@jackneele) June 13, 2022
He’ll have to explain how his institution will tackle the rising inflation and, if he were to surprise the markets with a new rate increase higher than 50 basis points (which is what analysts expect), a new leg down could start at that moment.
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