Analyst Says Bitcoin Could Crash Further After 6% Plunge To 3-Week Low

Bitcoin on 19 of August dropped by 6% from $25,000, bringing the price down to $22,000, and reaching the lowest price since 13 May. The dust has settled a bit, and the price seems to have stabilized at around $21,000, but crypto analyst “il Capo Of Crypto” says the downward trend may be far from over.

In a tweet following the crash, the analyst wrote that a test of $23,500 as resistance means the price is weakening and would be a good sell opportunity. He further stated that consolidation below the $22,500 and this level turning into resistance means the price is likely to drop to $21,000 or lower.

This scenario is already playing out as Bitcoin price now seems to be consolidating at $21,000, which means a lower price is possible. He had earlier predicted that a reversal below $26,000 means the asset would move to new lows, and the price under $22,500 is a bearish confirmation.

Crypto market down with Bitcoin

Other top cryptocurrencies are not left out of this Bitcoin downtrend. Ethereum for instance has lost its August gains after gaining substantially following the news about the Merge which is to come in September.

The asset went down 5.2% around the same time that Bitcoin experienced a retrace, bringing the price down to $1,600 at the time of writing this report. Like for Bitcoin, a different analyst, Crypto Chase says this confirms a bearish trend, unless $1,700 is reclaimed.

Other top cryptocurrencies like Dogecoin lost even more than Ethereum and Bitcoin, with most of them dropping more than 10% during the crash.

Weekends haven’t been the most friendly of times for the crypto market historically, which increases the chances of a further drop. Nothing is certain, but it seems the market is set for some more bearish sentiment in the coming days.

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