A closely followed crypto analyst is predicting new bear market lows for Bitcoin (BTC) as the equities markets struggle to generate any bullish momentum.
Pseudonymous analyst DonAlt says that it makes sense for Bitcoin to be consolidating at current levels as he says the bull market high of 2017 has been providing support for the leading cryptocurrency.
However, DonAlt warns that he now sees Bitcoin breaching support between $18,000 to $20,000 and recording a new cycle low.
“With these kind of ranges, what often happens is you get an undershoot of the range ($22,000 to $18,000) and then you come back up and then you trade up. That seems more and more likely to me… I think there’s a good chance that this range breaks down and then comes back and actually plays out bullish.
At the end of the day, it’s just a question of far can this range break down because it could easily go to $17,000, $16,000 [or] $15,000.”
Bitcoin is trading at $18,414 at time of writing, down over 6% in the past 24 hours.
According to DonAlt, his bearish Bitcoin thesis stems from his prediction that the S&P 500 is en route to revisiting its 2022 lows.
“Honestly, the main story is the S&P  and the S&P looks completely atrocious. It’s not look this bad in a long time. Honestly, it looks like it wants to break down fully, and it’s on its way back to monthly support at 3,680 [points].”
At time of writing, the S&P 500 is valued at 3,873.32 points.
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This article was originally reported on The Daily Hodl.