A venture capitalist named Chris Burniske, who accurately predicted the lowest point of the crypto market in 2022, is now forecasting another decline before a sustained upward trend.
He has shared with his 262,300 Twitter followers that they should anticipate a potential decrease of up to 40% in crypto assets, which will precede a long-lasting bull cycle that is expected to commence in 2024.
“Da bears prob get one more shot at a 20%-40% decline in quality crypto assets this year before the party starts for real next year into 2025. The question is from what prices will that decline begin…
Fed’s gonna push it til something breaks…”
As per Burniske, the crypto market decline is being driven by the Federal Reserve’s hawkish monetary policy.
The Federal Reserve Chair, Jerome Powell, has recently announced that they will likely increase interest rates this year in an effort to combat inflation.
However, such increases have historically led to poor performance for risk-on assets, such as cryptocurrencies. Burniske also predicts that the crypto market will experience a bull run only after the Nasdaq 100 index takes a break.
Last crypto correction before a massive bull market
Going by the Twitter handle Bluntz, this analyst has shared with his 223,600 followers that BTC seems to have formed a bearish lower-high pattern on its four-hour chart.
Based on this pattern, Bluntz believes that BTC has lost its momentum and is likely to experience an ABC correction, which could cause its value to fall below $28,000.
“Savage four-hour forming here on BTC. I am updating my view a little bit and now expecting a deeper decline, a little bit further than just a simple $29,000 sweep, thinking more like (a move to the) $27,000 zone now.”
An analyst predicts that if Bitcoin follows the trader’s pattern, it will experience a sudden reversal once it reaches its downside target.
The analyst’s chart indicates that this reversal will likely result in a rally that will push BTC above its resistance point at $31,500 and eventually reach around $33,800. Another crypto analyst, Inmortal, also believes that BTC may briefly drop below the psychological support at $30,000 before regaining its bullish momentum.
