A popular cryptocurrency analyst has shared important Bitcoin ($BTC) price levels to watch as the flagship cryptocurrency struggles to regain momentum after falling below the $20,000 mark after higher-than-expected U.S. inflation data sent markets tumbling.
The pseudonymous trader known on Twitter as Capo has told his over 500,000 followers on the microblogging platform that Bitcoin’s price faced a rejection around its resistance zone, meaning between the $22,500 and $23,000 marks, and is currently sitting at a support level.
Per the analyst, the cryptocurrency could move higher to trade at $23,000 in a move that “would still be bearish.” Capo noted that “every bounce is a short opportunity.”
It’s worth noting that support and resistance levels are based on supply and demand. When demand outweighs supply, prices rise, while supply outweighing demand will lead to a drop. Support levels are levels in which demand increases to the point prices stop falling. Similarly, resistance levels are found when supply increases to the point prices stop rising.
In a separate tweet, the cryptocurrency analyst noted that he believes the flagship cryptocurrency could still drop to a low between $14,000 and $16,000, if BTC’s price trades below the $19,000 mark.
Capo noted that bitcoin can still move up toward the $23,00 mark, but noted he “wouldn’t be bullish” in case that happened, implying it would be a move meant to squeeze out short sellers.
At the time of writing, CryptoCompare data shows Bitcoin is trading at $20,150 after losing around 0.4% of its value over the last 24-hour period. The flagship cryptocurrency was trading at around $24,000 per coin a month ago.
As CryptoGlobe reported Robert Kiyosaki, the highly successful author of the “Rich Dad Poor Dad” series of personal finance books, has said that investors “need to get into crypto” ahead of the “biggest economic crash in world history.”
In his message, Kiyosaki predicted that the “biggest crash in world history is coming” and noted that bear markets are the best times for investors to accumulate wealth as the prices of assets are lower.
The best-selling author added that asset prices are crashing while he is in a “cash position waiting to pick up bargains, especially in real estate and bitcoin.” Per his words, the U.S. Federal Reserve and Treasury are destroying the U.S. dollar, which he noted is leading to mainstream acceptance of cryptocurrencies that aren’t controlled by central entities.