Bitcoin briefly slipped below the $19,000 mark on Monday as the S&P 500 index was down 54.85 points on Friday. The S&P 500 index fell 1.51% to reach 3,585 and it is now close to its March 2020 lows. On the other hand, Dow Jones tumbled 9% on Friday and was down 500 points in the day’s trade. The markets printed new lows in Q3, 2022 which may pave the way for another depreciating quarter.
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Pseudonymous crypto analyst Cantering Clark warned investors that if the S&P 500 continues its bearish streak, Bitcoin could correct 40% from its current levels. The analyst stated that if the S&P 500 dips to 3200 to 3400 levels, Bitcoin could go down with it and touch $12,000 to $13,000.
“If the S&P 500 drops down to the next major region between 3200-3400. I think the right assumption would be that crypto beta would be at least 2-3x that, which at a minimum means Bitcoin retests the ledge of the highest volume node of the last five years – so around $12,000-$13,000,” he tweeted to his 130,000 followers.
In the short term, the analyst believed that Bitcoin could climb above the $20,000 mark again before heading south. “If we can break above these local highs, I think Bitcoin sees some momentum come in,” he said.
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Can Bitcoin Reach $12,000? Here’s Our Take
The confidence in the markets has taken a beating as cryptos are down for 10 consecutive months. Investors who poured in their money during 2021’s bull run are underwater as the markets have shed their gains.
Bitcoin was trading at $36,000 early this year and is now at nearly half its price. Uncontrolled inflation in the US, UK, and the rest of Europe are adding a burden to the market’s ongoing problems. The US is in a ‘technical recession’ with three-quarters of negative GDP.
The global macroeconomic factors are not in favor of a bull run and both the stock and crypto markets might head further south. BTC might reach around $12,000 to $13,000 levels in the coming months as the markets are under bearish grips.
At press time, Bitcoin was trading at $19,129 and is down 1.1% in the 24 hours day trade. The king crypto is also down 72.3% from its all-time high of $69,044, which it reached last year.