Could September see a 40% fall in BTC before a bottom is reached?

• Attorney John E. Deaton warns of unpredictable short-term crypto market prospects.
• Deaton suggests FTX estate’s crypto sell-off could cause substantial market decline.
• Bitcoin investor Lark Davis downplays impact of FTX sell-off on market.

John E. Deaton, a renowned attorney in the cryptocurrency sector, asserts that the future of the crypto market is unpredictable until events unfold. In a recent publication, Deaton emphasized the instability of the short-term prospects for the crypto market, primarily due to the anticipated sale of the FTX estate’s cryptocurrency holdings this month.

Deaton examined the potential situations facing the cryptocurrency market, inquiring whether the bear market has reached its lowest point or if the suggested FTX sell-off could result in a further substantial decline in the crypto market. Deaton also questioned whether the FTX sell-off could drive the market to decrease by 30 to 40% in September before hitting a bottom.

In expressing his viewpoint, Deaton referenced a meme by cryptocurrency investor Scott Melker, indicating that we are currently in the “buy at bear market lows” stage of the crypto market. Interestingly, Melker’s visual depiction illustrates a continuous cycle filled with unpredictability. This alludes to the challenge of accurately forecasting the current state of the crypto market.

Lark Davis, a distinguished entrepreneur and Bitcoin investor, believes that the FTX sell-off will not substantially impact the crypto market’s progression. He recognizes the interest that the anticipated event has garnered, yet he maintains that the projected $3 billion injection into the crypto market is of little concern.

Davis has observed that the current state of the crypto market is unusual. He pointed out that there needs to be more activity in the cryptocurrency sector, even though we are only eight months away from the forthcoming Bitcoin halving. The renowned investor identified an emerging Death Cross on the Bitcoin chart, which could potentially drive the market downwards.

Davis clarified that the Death Cross, similar to the Golden Cross, has a reasonable accuracy rate. As with all other indicators in technical analysis, it doesn’t guarantee 100% prediction, but it is significant in assessing potential market direction.