Renowned investor and economist Louis Navelier believes that a significant bubble has inflated in the stock market, which could lead to a strong correction of risky assets. Bitcoin could drop to $ 10,000.
Louis Nallier recalled that during a similar correction of risky assets, which happened in February and March 2020, the bitcoin rate dropped significantly.
This time the situation may be even worse and bitcoin may lose up to 80% of its capitalization. This may be facilitated by the actions of the US Federal Reserve, which is trying to combat a significant increase in inflation.
“I would say that a drop below $ 46,000 (200-day moving average) would be a bearish signal. To complete the “double top” pattern, bitcoin must fall to $ 28,500, and such a decline may indicate a fall below $ 10,000. This is a decline of 80% and bitcoin has repeatedly demonstrated this behavior, “- said the investor.
Indeed, Bitcoin has plummeted 80% on multiple occasions. The last time such a fall was observed at the end of 2017, and then the first cryptocurrency was in the accumulation phase for a long time.
Earlier, the CEO of deVere Group, Nigel Green, said that Bitcoin should be bought precisely during the correction. Green believes that in a year, the rate of the first cryptocurrency will double.
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