Crypto Analyst Warns Bitcoin Could See Massive Depreciation as Stock

Crypto Analyst Warns Bitcoin Could See Massive Depreciation as Stock Markets Print New 2022 Lows

A closely followed crypto strategist and trader is warning bitcoin holders that BTC could witness a major capitulation event amid stock market weakness.

Pseudonymous trader Cantering Clark tells his 146,700 Twitter followers that if the S&P 500 (SPX) continues its bearish trend, Bitcoin could see a nearly 40% drop from current levels.

“If the S&P 500 falls into the next major region between 3200-3400 [points]I think the correct assumption would be that crypto beta would be at least 2-3x that, which at least means bitcoin is retesting the bar of the node with the highest volume in the last five years – so around US$12k-US13k -Dollar.

I know people will be citing idiosyncratic strength lately, which has been remarkable, but once the SPX starts dragging down multi-sigma moves in a short space of time, all risk assets fall in line.”

pictureSource: Galloping Clark/Twitter

On Friday, the S&P 500 closed at 3,585.61 points, 1.39% below its previous 2022 low of 3,636 points, which was printed in June.

In the short term, however, Cantering Clark says that if bitcoin bulls manage to retake the $20,000 price area, they could inspire some confidence.

“If we can break these local highs, I think bitcoin will see some momentum build up.”

pictureSource: Galloping Clark/Twitter

Pseudonymous analyst Jack also shares Cantering Clark’s outlook on BTC. According to Jack, Bitcoin is likely to gain bullish momentum if it surges above $20,000.

“I can be a bear all I want, but if that jumps over the creek, it’s a hell of a setup for too long and a good reason to part with the narrative and play the technique instead.”

pictureSource: Jack/Twitter

At the time of writing, Bitcoin is changing hands at $19,323, flat rate per day.

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Featured image: Shutterstock/Lidiia