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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Why Crypto Could Go Another 15% Lower, This Expert Says

Reynaldo Marquez
Reynaldo Marquez
3 years ago
2 mins read
Crypto coins

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Crypto has dropped below the $1 trillion total market capitalization and has returned to its January 2021 levels. At that time, the sector was preparing for a massive bull run that would take its market cap above the $3 trillion.

Related Reading | Anthony Scaramucci Reveals Buying Crypto During Crash, Suggests Staying Disciplined

This time the sector seems to be threatening further losses and for a potential new leg down into its 2020 levels. At the time of writing, the total crypto market cap stands at $870 billion and continues to trend to the downside on the daily chart.

Crypto total market cap Bitcoin
Total crypto market cap trends to the downside on the daily chart. Source: Tradingview

Analyst Justin Bennett believes the sector will “imminently” take a leg lower. He expects the market to find support at $730 billion as it was unable to hold above the $860 billion mark.

The current market conditions, the shift in the U.S. Federal Reserve (Fed) monetary policy, the relentless selling pressure, and the series of negative news in the space seem to support this thesis. Sharing the chart below, Bennett said:

The next leg lower looks imminent. This is where we’re probably going. Another 15-25% to reach the TOTAL confluence of support and measured objective. Expect a 30% drop for most altcoins.

As usual, Bitcoin holds the key for the entire crypto sector as most altcoins tend to follow BTC’s price action. Bennett claims the number one crypto by the market could see a similar 15%-25% drawdown if it breaks the $20,000 area.

This would send BTC’s price to its next critical support zone at around $19,850 and for the first time in its history below its previous all-time high.

On lower timeframes, data from Material Indicators (MI) records over $15 million in buying orders for BTC at $20,000. In the opposite direction, there are around $9 million in asks orders at around $20,900 which could operate as resistance in the short-term.

Bitcoin BTC BTCUSD Crypto
Source: Material Indicators

Will Bitcoin Bounce With The Stock Market?

The benchmark cryptocurrency has been moving in tandem with traditional equities, mainly the Nasdaq 100 Index and the S&P 500. According to Jurrien Timmer, Director of Macro for investment firm Fidelity, the S&P 500 has reached oversold levels. He said:

The weekly stochastics for the SPX: It’s at oversold readings consistent with major bottoms. I don’t believe we’re there yet but we could be getting close. We’re only 1 P/E point away from fair value.

Related Reading | TA: Bitcoin Remains In Downtrend, Risk of Drop Below $20K

If equities find a bottom soon, as Timmer claims, Bitcoin and the crypto market could bounce and prevent Bennett’s scenario. The drawdown in traditional finances has created a capitulation event, as seen below, which could play in favor of digital assets.

A quick take on technicals: signs of capitulation are starting to show. We can see it here…1/ pic.twitter.com/1SSYFCj8ir

— Jurrien Timmer (@TimmerFidelity) June 17, 2022

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

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NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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