A popular pseudonymous crypto analyst and trader, Pentoshi, has stated that Bitcoin (BTC), the largest cryptocurrency by market cap is primed for a notable correction, while the embattled digital token XRP is heading towards a new price range.
Bitcoin Is Primed for a Major Correction
Pentoshi predicted that the next imminent correction of Bitcoin (BTC) would bottom at $20,000 price range. He added that the timing of the current upward movements is an indication that the correction would be huge:
“The time and distance of each BTC move gets smaller. Less consolidation and less upwards movement.
Markets can be like a pendulum and this will swing the other way. Theory remains unchanged. We will see low $20,000’s.”
The analyst also highlights data from investment firm, Grayscale, indicating that their Bitcoin and Ethereum assets under management have dipped slightly in the past few days. Pentoshi says the data supports his theory that the crypto king has hit a top.
“To me this signifies a local top, and makes sense from a technical perspective using fibs. I believe we get a 15-30% pullback before making new ATH’s. A bullish pullback per se.”
Pentoshi added that “It’s not about capturing the bottoms or tops of the market but 70-80% of the move. Nothing has made me more money than understanding the power of compounding in saying that.”
However, the trader averred that Bitcoin’s bull cycle is not over yet, but he thinks as the New Year begins, altcoins hold the better risk-to-reward ratio.
“At this point it’s undeniable to me that alts have more upside in 21 than BTC.”
Pentoshi’s Opinion on Where XRP Is Heading
Sharing his opinion regarding XRP, the trader pointed out that the cryptocurrency is still searching for bottom as Ripple prepares to start a legal tussle with the United States Securities and Exchange Commission (SEC).
According to the analyst, XRP may soon lose relatively 50% of its current value.
“In my opinion the dust will settle in the next few weeks/months somewhere in-between $0.07-$0.12. Liquidity will dry up. ODL can’t be used on Bitstamp. More exchanges will halt trading. Larger players will continue to de-risk and get rid of excess inventory. Just the way I see it.”