Bitcoin is predicted to fall to 2022 lows

Cryptocurrency analyst Justin Bennett warned his Twitter audience that the flagship cryptocurrency could fall by 50% and reach its lowest levels in 2022.

Bennett backed up his words with a chart showing that bitcoin has broken out of the upward channel where it had been for about a decade. The digital asset failed to overcome resistance at levels between $ 29,000 and $ 33,000. Accordingly, the fall could be large-scale and the rate is quite capable of dropping to $ 14,000. This level was a strong support in the period from 2018 to 2020.

A 27% dump from $SPX is more than possible if this confirms as a lower high.

We've already seen significant breakdowns from other indices and big names like $AAPL, so don't rule it out.

Imagine the carnage in the #crypto market if this materializes. 💀 pic.twitter.com/jRgC5LAqNd

— Justin Bennett (@JustinBennettFX) August 9, 2023

In addition, the analyst noted the growing likelihood of a global economic recession. In his opinion, the US stock index S&P 500 may well lose tens of percent, given that the index failed to repeat the record of early 2022, when the chart reached 4,750 points.

«The SPX index can drop by 27%. We have already seen similar declines, including large companies like Apple. So don’t give up on the investment opportunity. Imagine the situation in the cryptocurrency market if the stock market falls like that,» Bennett wrote.

A similar view is shared by an analyst known as Bluntz, who predicted a bearish trend in bitcoin in 2018. According to Bluntz, the total capitalization of the cryptocurrency market may decline by 15% before a large-scale growth. If the trader is right, the cryptocurrency market capitalization will drop to $ 880 billion from the current level of $ 1.03 trillion. Bluntz draws its conclusions based on the Elliot Wave Theory, a complex technical analysis of asset behavior taking into account crowd psychology.

At the time of writing, the flagship cryptocurrency is trading at $ 26,036, down 1.7% per day. The market capitalization of the asset was fixed at $ 506 billion. BTC’s market share is 46.5%.