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Crypto market to be gripped by bearish sentiment

Crypto market to be gripped by bearish sentiment

According to analysts at Fairlead Strategies, the bearish trend in the crypto market may persist if bitcoin dives below $20,000.

If so, BTC may slide down to the support level of $13,900, Kathy Stockton, the Founder and Managing Partner of Fairlead Strategies, said. Judging by forecasts, the short-term momentum of the crypto market has changed from bullish to bearish. BTC is now trying to consolidate in the support zone of $18,300 - $19,500 after the sell-off triggered by the disappointing US CPI Index for August.

On September 21, bitcoin fell by 0.5% to $18,950 following a 75 basis point rate hike by the Fed. Analysts reckon that if BTC dips below this level, hovering near $18,300 for two weeks, the risks of its decline will increase. BTC is expected to sink by 29% to the next support level of $13,900 in the long term. Naturally, other digital assets will follow suit. 

Since early September, bitcoin has surpassed Ethereum. After the Merge update, held in early autumn, ether faced a sell-off. It was unable to spread its wings even after the transition of the ETH network from the proof-of-work to the proof-of-stake. ETH is likely to edge lower by 27% to $1,000.

However, BTC may resume bullish momentum provided that it will escape a decrease to the support level and consolidate above the resistance level of $22,000.


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