Pi Coin price rose by 1.05% today, Dec. 18, mirroring the performance of Bitcoin and other altcoins. It has jumped by 5.8% from its lowest level this week. However, there is a likelihood that it may retreat as an analyst warns that Bitcoin may drop to $70,000 after the Bank of Japan (BoJ) interest rate hike.
Pi Coin Price at Risk as Analyst Warns of a Bitcoin Crash After the BoJ Rate Hike
A top crypto analyst has warned that the Bitcoin price may crash in the near term as odds that the Bank of Japan (BoJ) will deliver its first interest rate hike in eleven months.
Data compiled by Polymarket shows that the odds of a hike have jumped to 98%, meaning that it has already been priced in. These odds have jumped after the recent statements by Kazuo Ueda, the governor, and after the recent inflation numbers, which showed that prices remained at an elevated level.
A BoJ rate hike has always been followed by a Bitcoin price retreat because of the impact of on carry trade, which has existed for years. A carry trade is a situation where investors borrow from a low-interest-rate country and invest in a high-interest-rate one. In this case, it was common for investors to borrow the cheap yen and invest in risky assets.
In an X post, Ali Martinez, a popular crypto analyst, predicted that the coin may eventually drop to the support at $70,000, citing that it is forming a bearish flag pattern. Such a move would be a 21% drop from the current level. It would also mean that it drops below the April low of $74,400.
The most likely scenario is where the Pi Coin price drops when Bitcoin makes a strong bearish breakdown. That’s because, in most cases, altcoins normally drop when Bitcoin is in a steep sell-off.
Pi Network Has Also Formed a Bearish Chart Patterns
The daily timeframe chart shows that the Pi Coin price has also formed some highly bearish chart patterns, pointing to more downside in the near term.
A closer look shows that it has formed a double-top pattern at $0.2822 and a neckline at $0.2035, its lowest level on November 4.
Pi Network token has remained below the Supertrend indicator, a sign that bears remain in control. It has also plunged below the 50-day and 100-day Exponential Moving Averages (EMA), and is slowly forming a bearish flag pattern.
Therefore, the coin will likely continue falling as bears target the next key support level at $0.1530, its lowest level in October, which is 27% below the current level. A move below that level will point to more downside to $0.1500.