Crypto Analyst Warns Bitcoin Could Witness Massive Devaluation As Stock Markets Print Fresh 2022 Lows
A closely followed crypto strategist and trader issues a warning to Bitcoin holders that BTC could witness a major capitulation event amid stock market weakness.
Pseudonymous trader Cantering Clark tells his 146,700 Twitter followers that Bitcoin could witness a drop of nearly 40% from today’s levels if the S&P 500 (SPX) continues its bearish streak.
“If the S&P 500 drops down to the next major region between 3200-3400 [points]I think the correct assumption would be that the crypto beta would be at least 2-3 times that, which at least means that Bitcoin is testing the ledge of the highest volume node in the last five years – so around $12,000-$13,000.
I know people will cite idiosyncratic strength of late, which strength has been remarkable, but as soon as the SPX starts pulling multi-sigma moves down in a short period of time, all the risk assets fall in line.”
On Friday, the S&P 500 closed at 3,585.61 points, 1.39% below the previous 2022 low of 3,636 points printed in June.
In the short term, however, Cantering Clark says Bitcoin bulls could inspire some confidence if they manage to regain the $20,000 price range.
“If we can break above these local highs, I think Bitcoin will see some momentum come in.”
With the pseudonymous analyst Jack, Cantering also shares Clark’s views on BTC. According to Jack, Bitcoin is likely to gather bullish momentum if it rises above $20,000.
“I can be a bear all I want, but if this jumps the creek, it’s a damn fine line-up for long and good reason to part with the narrative and play the technicality instead.”
At the time of writing, Bitcoin is changing hands for $19,323, flat on the day.
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