A high-profile cryptocurrency strategist and trader has issued a warning to Bitcoin holders. Bitcoin We could witness a major surrender event amidst stock market weakness.
Pseudonymous trader Kantering Clarke told his 146,700 Twitter followers that Bitcoin could fall nearly 40% from current levels if the S&P 500 (SPX) continues its bearish run. I’m talking
“If the S&P 500 fell to the next major region between 3200 and 3400 [points], I think the correct assumption is that the crypto beta will be at least 2-3x. This means at least Bitcoin will retest its ledge for the highest volume node in the last five years. So about $12,000-13,000.
I know people cite idiosyncratic strength these days, that strength is worth noting, but as soon as SPX starts pulling a multi-sigma move downwards in a short period of time, all the risks Assets line up. ”
On Friday, the S&P 500 closed at 3,585.61 points. That’s 1.39% below his 3,636 points, his 2022 low printed in June.
However, Cantering-Clark says that in the short term, Bitcoin bulls’ ability to recapture the $20,000 price range could inspire some confidence.
“I think Bitcoin is gaining momentum if it can break out of these local highs.”
Fellow pseudonymous analyst Jack also shares Cantering Clarke’s outlook on BTC. According to Jack, bullish momentum is likely to increase once Bitcoin rises above his $20,000 mark.
“I can be a bear as much as I want, but if this one jumps over the creek, it’s a very nice setup that will justify detaching the narrative and playing technicals instead for a long time.”
At the time of writing, Bitcoin is trading at $19,323, flat for the day.
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