Bearish scenarios for Bitcoin, which receded with global markets, increased. We mentioned in our previous analysis that we are at a technically critical level. Many analysts think that $ 40,000 is a psychological level and breaking this level will decrease the appetite for risk for a while.
$ 40,000 is important, said Gareth Soloway, chief market strategist at InTheMoneyStocks.com, which provides technical guidance to investors investing in equity markets.
Speaking to Kitco News, the strategist stated that if Bitcoin breaks the $ 40,000 level, it may enter a downtrend that will continue to $ 18,000. Soloway also thinks that if Bitcoin returns to these levels, this will be the bottom.
Stating that unless the $ 65,000 level is broken or there is a real bottom, Bitcoin will not be able to regain its previous upward momentum, and said:
“Bitcoin will not regain its bullish momentum unless it sets a new record ($ 65,000). The technical level I’m seeing right now is $ 40,000 to $ 41,000. If these levels break, the price will drop to $ 30,000. In the long term, I think we will eventually hit a level between $ 18,000 and $ 20,000.
The correction did not surprise us, we were predicting that the Evergrande crisis could affect both Bitcoin and global markets. Although it has entered bearish momentum in the short to medium term, we believe that Bitcoin will rise excessively in the long term. “
* No investment advice.