A significant warning has been issued by crypto expert Tony Severino regarding the potential for a further drop in Bitcoin’s price. This caution comes in response to a crucial technical indicator shifting into a bearish phase for the leading cryptocurrency. However, Severino also mentions that Bitcoin’s bullish supporters have an opportunity to counteract this bearish trend in the next 20 days.
In a recent discussion, Severino suggested that Bitcoin’s price is at risk of a more significant crash due to the S&P 500’s monthly LMACD starting to display bearish tendencies. This change is critical, as data from IntoTheBlock indicates that Bitcoin and the stock market continue to have a positively correlated price trajectory.
Severino believes that if the Bitcoin bulls can diverge from this bearish setup within the next 20 days, it could result in a bullish trend. However, if they fail to do this, Bitcoin could suffer a severe decline, potentially worse than what it has already endured.
If this bearish setup is confirmed by the end of the month, it could signal the beginning of a bear market or a Black Swan event. This scenario has happened twice in the past when similar crossovers occurred. It’s important to note that Bitcoin has already dipped to a low of $76,000 recently, raising concerns that a bear market may already have begun.
Despite this, crypto authorities like BitMEX co-founder Arthur Hayes believe that the bull market still holds for Bitcoin. Hayes pointed out that Bitcoin has experienced a 30% correction from its most recent all-time high (ATH), which is not unusual during a bull run. Hayes anticipates that Bitcoin will bounce back once the US Federal Reserve starts to relax its monetary policies.
Even in light of the recent crash, Kevin Capital, a crypto analyst, is optimistic about Bitcoin’s future. He insists that Bitcoin is still performing as expected and that the currency could potentially test the range between $70,000 and $75,000, which he believes would be acceptable.
According to Capital, Bitcoin’s price could stay afloat if it maintains a key market structure and if the 3-day MACD resets. He suggested that positive macro data could assist Bitcoin in remaining above critical support levels. Today, the US CPI data will be released, and if it indicates a slowdown in inflation, it could provide some market relief. In Capital’s view, a single positive inflation report could reverse the current situation.
At the time of this writing, Bitcoin is trading at approximately $81,860, representing a 2% increase in the last 24 hours, as per CoinMarketCap data.
