On September 13th, the market plunge changed the scenario and the outlook that many analysts and traders were clinging to.
An example of this is analyst Kaleo, who initially had a bullish stance towards bitcoin, but has now decided to go the other way.
Kaleo informs his 535,500 followers over Twitter that his earlier stance towards Bitcoin, which was bullish, has changed. He also says that his earlier Bitcoin target, which was $28,000, doesn’t hold any value any longer.
This is because Kaleo now believes that Bitcoin will see a drop of around 31% from its current trading which is $20,253.
The analyst’s chart resembles that of Bitcoin’s trading in 2021 where BTC was selling above $40,000 before dropping to the $30,000 level. As per Kaleo, if this momentum repeats, the Bitcoin price will plunge near $13,750.
Bitcoin price will hold the $18,500 level
Strategists talk about the Consumer Price Index (CPI) released yesterday, which claims inflation is now 8.1%. He also says that after the release of CPI data, the stock markets had also indicated a bearish dominance.
Market participants follow CPI data closely. Over the last month, inflation has gone up by 0.1%, which has sowed a sense of fear among investors and traders in terms of the interest rate hikes by the Federal Reserve.
In addition, Kaleo claims that if bitcoin could hit the S&P 500 in September.
3,886.75 points, things will get worse and will pose a hindrance to the BTC price rise.
The analyst ended his analysis by claiming that bitcoin should stay at its $18,500 level and that if it loses, liquidations will be bad. He believes that Bitcoin accumulation below $20,000 and Ethereum below $2,000 will be helpful in the long term.
He also states that if the flagship currency plunges from here, there won’t be any hope for recovery for a long time.
At the time of reporting, bitcoin is selling at $20,354 after a drop of 8.42% over the past 24 hours.
