• Crypto analyst predicts that Bitcoin (BTC) could drop by 38% if it loses its immediate support.
• Pentoshi mentions the possibility of the DOJ suing Binance and a potential stock market correction as headwinds.
• He also suggests that the S&P 500 index may pull back in the next few weeks to 4,300.
Crypto Analyst Predicts Bitcoin Price Drop
A widely followed crypto analyst and trader is warning Bitcoin (BTC) investors of a potential price drop of up to 38%. The pseudonymous analyst known as Pentoshi believes this could occur if BTC loses its current support level.
Potential Headwinds for BTC
Pentoshi outlines several headwinds that could catalyze another leg down for BTC, including the possibility of the Department of Justice (DOJ) suing Binance or a correction in the stock market after recent rallies.
S&P 500 Could Pull Back Soon
The crypto analyst also takes a look at how other markets are performing, predicting that the S&P 500 index may pull back in the next few weeks to 4,300.
Managing Risk Around Current Price Level
In terms of managing risk around current price levels, Pentoshi recommends tapping into certain price ranges between $19,000 – $20,000 and $22,000 – $23,000 if we fall back into those areas. He also notes that altcoins have returned to November lows which can be taken into account when evaluating risk management strategies.
Conclusion
It appears that Pentoshi is bearish on Bitcoin’s short-term prospects due to factors such as government intervention and stock market corrections which could weigh on BTC’s performance over the coming weeks. Investors should take this advice with caution and conduct their own research before making any high-risk investments in digital assets or cryptocurrencies like Bitcoin (BTC).