Investor-billionaire Louis Navellier warns Bitcoin could fall to $10,000

In the Bitcoin chart there is a growing signal of formation of a «double top», the realization of which could occur as the ФРС normalises monetary policy. This view is held by Louis Navellier, CEO and founder of Navellier & Associates, with assets of $2.5 billion, according to Business Insider.

The investor has run a stock-market newsletter for more than 30 years. Since 1997, following his recommendations from an initial $100,000 could have yielded $1.67 million, according to the firm’s data.

Navellier was alarmed by the hype surrounding the first cryptocurrency. As an example, he cited $100 million advertising campaign by Crypto.com featuring Matt Damon.

According to the billionaire, the Bitcoin bubble will be blown by the Fed’s battle against inflation, which began with the tapering of asset purchases. Powell’s latest statements indicated that this process could end a few months earlier than expected.

«The Fed is winding down the quantitative easing programme. This should lead to a correction in risk assets, including Bitcoin. The faster the Fed moves, the greater the volatility we will see», — пояснил он.

Navellier did not rule out the continuation of the November correction, which would lead to a deep bearish reversal.

«I would call a move below $46,000 (the 200-day moving average) a yellow flag. A drop below the spring low of $28,500 would complete a massive double top, indicating the potential return to $10,000. By the way, that would align with many of the numerous 80%+ pullbacks in its rich history», — he wrote.

Earlier, Galaxy Digital founder Mike Novogratz saw Powell’s reappointment as a risk for Bitcoin.

Earlier, Stock-to-Flow model analyst PlanB admitted the failure of his own ‘worst-case’ scenario, according to which Bitcoin’s price was expected to reach $98,000 in November.

Subscribe to ForkLog’s channel on YouTube!