Gareth Soloway, the chief market strategist at stock technical guidance platform InTheMoneyStocks.com has stated that Bitcoin could experience a further pullback after the asset’s price plunged by almost 10% on Monday.
Speaking to Kitco News, Soloway suggested that if the asset breaks the $40,000 level, it will open the door for further correction to as low as $18,000. However, he maintains that Bitcoin will bounce back if such a level is attained.
He noted that the asset could only embark on an upward momentum if it tops $65,000, a new record price level.
“We’re seeing a follow-through today. We haven’t really taken out the low-pivot from that down day; that’s the technical level I’m watching right now. If that gets taken out, then you’re likely going down to the $40,000 to $41,000 level right here, and then all the way down to $30,000. You guys know my longer-term projections…eventually, you’re going to get to the $18,000 to $20,000 marker on Bitcoin,” he said.
The correction comes after Bitcoin traded above $50,000 early this month, a level regarded as key psychological resistance for investors. However, on Monday, the cryptocurrency market led by Bitcoin plunged with most assets trading in the red zone. By press time, Bitcoin was trading at $43,270, dropping almost 4% in the last 24 hours.
The future of Bitcoin
According to the strategist, Bitcoin remains the future, but the asset and the general cryptocurrency market need to handle the issue of liquidity.
At the same time, Soloway noted that the correction should not come as a surprise. In his previous interviews, he had predicted that there was going to be a general de-leveraging crisis that would trigger the fall not only in stocks but also in crypto.
On the next course of Bitcoin, Soloway said that the asset would embark on a near-term to midterm bearish momentum and extremely bullish in the long-term.
The Monday crypto market decline emerged as concerns on the regulation of stablecoins accelerated. This is after the Financial Stability Oversight Council noted that it could classify stablecoins as systemically risky.