A trader who has reached the end of Bitcoin’s (BTC) bull market in 2021 warns that the crypto king is at risk of witnessing more sell-off events.
Pseudonymous analyst Pentoshi tells his 692,900 Twitter followers that Bitcoin seems perilously close to breaking its immediate support of around $25,000.
According to Pentoshi, a correction in the stock market could catalyze the next leg for BTC.
“The point is that for BTC and ETH, I feel there is strong potential to break these 90-day ranges with the context of overall weakness in crypto markets and with SPX and NQ likely at or near local highs.
Highlighted the two most interesting levels on a breakdown from here.
Looking at Pentoshi’s chart, a move below $25,000 could push BTC to around $22,600 first, with $20,000 as the last support line.
At the time of writing, Bitcoin is trading at $25,738.
The crypto trader is also eyeing the price action of Binance Coin (BNB), the utility token of the world’s largest crypto exchange. According to Pentoshi, BNB is likely to drop below $200 in the coming months.
“We’ll probably find out soon enough what’s below this (Q3), and it’s probably ugly.”
At the time of writing, BNB is worth $235.66.
As for the broader crypto markets, Pentoshi say that altcoins could continue to lose value despite falling sharply over the past year.
“Just because something is down 90% doesn’t make it a good buy. Context is incredibly important. Something can fall 90% repeatedly.”
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Image generated: Midway through the journey