Bitcoin crash below $10k: prediction by head of Navellier

Sat 04 Dec 2021 ▪ 20h35 ▪ 3 min read — by Hugh Renolds

Louis Navellier, chairman and founder of Navellier & Associates, said in an interview with Business Insider that Bitcoin is looking at an 80% correction and its eventual downfall to $10,000. According to the expert, the aggravating situation in the American financial market will cause capital outflow from risky assets, including the crypto sphere.

Bitcoin could crash by 80%

Navellier & Associates is a Reno, Nevada-based company that manages $2.5 billion (~£1.9 billion) in total assets. Louis Navellier is its founder and current CEO. The investor has been keeping the stock market bulletin going for over 30 years. Since 1997, working by his recommendation from a starting $100,000 (~£75,000) could’ve brought in $1.67 million (~£1.25 million) in profits, according to the firm.

Navellier recalled that during a similar correction of risky assets in February and March 2020, the Bitcoin price had dropped a lot. This time, the situation may get even worse and BTC could lose up to 80% of its market cap. If the price of the first cryptocurrency drops below $28.5 thousand, this will mean the implementation of the “double top” pattern, which is already quite discernible on the asset’s price chart. According to the expert, when Bitcoin crashes this time, it will be a very hard fall due to a large number of individual investors.

“I would say that a drop below $46,000 (200-day moving average) would be a bearish signal. To complete the “double top” pattern, Bitcoin must fall to $28,500, and such a decline may indicate a fall below $10,000.” This is a decline of 80% and Bitcoin has repeatedly demonstrated this behaviour,”- said the investor.

Fed actions will aggravate the fall

The sharp downturn may be facilitated by the actions of the US Federal Reserve, which is trying to fight a significant increase in inflation. Navellier believes that a significant bubble has inflated in the stock market, which could lead to a strong correction of risky assets. Recent statements by Chairman Jerome Powell indicated that the process could end “several months earlier than expected.”

“The more the Fed tapers, the more volatility we should see in both stocks and bonds — and yes, Bitcoin, too,” he explained.

Recall that the founder of the crypto bank Galaxy Digital Mike Novogratz saw in the reassignment of Jerome Powell a risk for Bitcoin since Powell’s approach to monetary policy is aggressive.

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Hugh Renolds

I believe in the bright future of crypto. I have been investing since 2017 and look to share my experience in, and thoughts on, crypto and the blockchain.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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