Bitcoin, the pioneer cryptocurrency, has been hovering below the $20,000 mark for nearly two years now, causing speculation about whether it will ever reach these levels again. Despite this, a notable analyst suggests that the price of Bitcoin dropping to $20,000 is not a question of if, but when.
A crypto analyst known as “Without Worries” recently shared a new analysis on the TradingView website, detailing the potential for Bitcoin to crash back down to $20,000. Their analysis focused on the 3-week chart of Bitcoin, revealing key events that could lead to this outcome.
One crucial indicator highlighted in the analysis is the Stochastics RSI, which has shown significant movements recently. The Stochastic RSI moved above 80 before crossing back down to 50, indicating that resistance is building up. This particular indicator is often used to determine bull and bear cycles, suggesting a potential downtrend on the horizon.
Looking back at previous instances of resistance in 2018 and 2019, the analyst noted a subsequent downtrend in the Bitcoin price. Furthermore, in 2021, a similar resistance point led to a 70% decline in the price of Bitcoin. If history were to repeat itself, this could mean a return to the $20,000 level once again.
While the analyst acknowledges the possibility of Bitcoin reaching new peaks, they do not foresee a continuous bull run beyond 2025. The market sentiment, still gripped by fear according to the analyst, suggests that a market top has not yet been reached. The analyst believes that the market will only reach its peak when euphoria sets in.
The crypto analyst warns investors to remain cautious and watch for confirmation of resistance that could signal the beginning of a downtrend. They predict that if the resistance pattern persists, the Bitcoin price may indeed fall back to $20,000. Ultimately, the future of Bitcoin remains uncertain, with potential for significant price movements in the coming years.
