Renowned crypto analyst Pentoshi recently issued a warning about the future of Bitcoin in a tweet, suggesting a possible significant decline in its value. With a substantial following on Twitter, Pentoshi believes that if Bitcoin fails to maintain its current support level, it could drop by as much as 38%.
Pentoshi has been closely observing Bitcoin’s price movements for the past two months and indicates that if the cryptocurrency falls below a specific range, it is highly likely to reach prices between $19,000 – $20,000 and $22,000 – $23,000, based on similar patterns observed in the past.
Several factors contribute to the potential decline highlighted by Pentoshi. Firstly, there is speculation that the Department of Justice (DOJ) might take legal action against Binance, a prominent crypto exchange. This news could have a negative impact on the overall crypto market, including Bitcoin. Additionally, Pentoshi points out that the stock market has experienced a recent surge and may be overdue for a correction, which could potentially affect cryptocurrencies as well.
Pentoshi also emphasizes that altcoins have fallen to their November lows. He explains that most altcoins lack revenues, lucrative enterprises or services, and typical investment tools like 401ks and ETFs. Due to market uncertainty, significant allocators are reluctant to invest in cryptocurrencies.
Also Read: Altcoins Can Rally 25% to 30% If Bitcoin Price Surge Above This Crucial Level
The analyst’s opinion is that the DOJ lawsuit against Binance is highly probable and almost certain to happen, further adding to the potential downward pressure on Bitcoin’s price. There is also a possibility that the S&P 500 index and Nasdaq, which have been performing well recently, might reach a peak and subsequently experience a correction. This, combined with the aforementioned factors, contributes to Pentoshi’s bearish sentiment on Bitcoin.
As of now, Bitcoin is trading at $26,225, but investors should remain cautious as market conditions and various external factors could potentially lead to a significant decline in its value.
Considering the warnings and potential risks outlined by Pentoshi, it is advisable for investors to evaluate their risk management strategies for their Bitcoin investments. This may include diversifying their portfolio, setting stop-loss orders, and staying updated on the latest market news and developments. Ultimately, each investor should carefully assess their risk tolerance and make informed decisions based on their individual circumstances.