The co-founder of Absolute Strategy Research, Ian Harnett, feels that Bitcoin’s demise is not yet complete. When Bitcoin rallies, he claims, it loses 80 percent of its value, as evidenced by previous rallies.
When Bitcoin touched $3,000 in 2018, he used the previous year’s record high of over $20,000 as an example. Ian went on to say that if the same thing happened again, bitcoin would drop by 40% and reach $13,000.
2021 was a record-breaking bull market for bitcoin, with its all-time high price of $69,000. According to Ian, Bitcoin might reach $13,000 if this happens. A critical support level is at $13,000.
A combination of high inflation and an increase in interest rates contributed to the current bear market’s downturn. Last month, the Terra ecosystem collapsed, causing the most significant impact. The stock and crypto markets were severely impacted by all of these reasons.
The Celsius issue, which froze withdrawals, swaps, and trading for almost eight days, followed these occurrences. Three Arrows Capital has also shown that it is financially unstable by losing a lot of money on its LUNA investment.
Bitcoin’s collapse below $18,000 last week has had a small impact on the market. However, the market should be prepared for more carnage if Bitcoin reaches $13,000.