Bitcoin News

Bitcoin Might Face Upto 80% Price Correction – Analyst Louis Navellier.

Louis Navellier, a well-known growth investor, predicts that Bitcoin will sink inexorably. 

Bitcoin might face an 80% correction, according to Louis Navellier, founder of Navellier & Associates. According to a famous money manager, the main hurdle for bitcoin would be the US Federal Reserve’s tapering of its bond purchase program: The Fed is starting to taper, which should cause a drop in risk assets, including bitcoin. The more the Fed tightens its monetary policy, the more volatility we should see in equities, bonds, and, yes, bitcoin.

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BTC/USD 1 DAY PRICE CHART: SOURCE- COINMARKETCAP.COM

Bitcoin has been stuck in a range for the previous two weeks, failing to gain traction over the $59,000 resistance level seven times. At the time of writing, Bitstamp was trading the flagship cryptocurrency for $56,676. It’s down 17.5% from its all-time high.

If Bitcoin continues to slide lower, Navellier believes it will form a frightening double-top pattern. A drop below $28,500 in the top cryptocurrency should be a major red warning for bulls. A double-top formation would be verified in this event, and Bitcoin would be on pace to drop back into the four-digit territory.

While such gloomy predictions may appear extreme, BTC has seen its fair share of big price drops. It saw an 84.5 percent drop from its previous bull market peak of almost $20,000 in December 2018.

Such a drop would be consistent with BTC’s prior drops: A drop below $46,000 (the 200-day moving average) would be a red signal, and a down below the spring low of $28,500 would be a completed enormous double top, pointing to a drop to below $10,000, which would coincide with many of the multiple 80%+ drops in its illustrious history.

 

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