Why Carter Worth Is Worried Bitcoin Could Crash

On CNBC's "Fast Money," Carter Worth of Cornerstone Macro spoke about potential risks in Bitcoin BTC/USD and said an important head-and-shoulders reversal pattern is forming.

Bitcoin reached its highs in April and has dropped 53% since then, right to a trendline. It bounced from the trendline, but it failed to move above the January high.

The bounce looks like a right shoulder in the head-and-shoulders top formation, said Worth. If this really is the formation, the measured move could be back to $20,000.

Such a move would be a decline of around 70%, and that is not strange for Bitcoin, as it has already had three similar drawdowns. In 2011 it dropped 93%, in 2014/15 it fell 86% and it lost 84% in 2018/2019, explained Worth.