Bitcoin has not seen prices in the $20,000 range for nearly two years, leading some to speculate that the pioneering cryptocurrency may never revisit this level. However, one analyst contends that Bitcoin’s price plummeting back to $20,000 is not a matter of if, but when. While they do not foresee this crash occurring imminently, they caution that the possibility remains very real.
In a recent analysis on the TradingView website, a crypto analyst known as “Without Worries” examined the potential for Bitcoin’s price to crash to $20,000 again. The analysis, which focused on the 3-week chart for Bitcoin, revealed intriguing insights into the digital asset’s movements.
The analyst pinpointed several critical events that have sparked expectations of a price drop. A significant factor involves the Stochastics RSI, an important indicator of bull and bear cycles, which has recently shown some notable activity. Specifically, the Stochastic RSI had soared above 80 before falling back to 50, suggesting that resistance is building. The analyst advises investors to remain vigilant for confirmation of this resistance, which could signal the onset of a downward trend.
Historically, this resistance has led to significant declines. In 2018 and 2019, resistance levels preceded substantial downturns. The pattern repeated in 2021, with each instance resulting in an average 70% decline from the resistance points. If this pattern holds true, a reappearance of resistance would suggest that Bitcoin’s price could fall back to the $20,000 range. However, the analyst believes this scenario may take several months to unfold.
The analyst also touched upon the possibility of a Bitcoin bull run extending into 2025. Contrary to some optimistic predictions, they do not believe this is plausible. Although many expect Bitcoin to reach new peaks, the analyst argues that the market is not yet at its top, primarily because it is still gripped by fear. The market, they assert, is likelier to peak during a state of euphoria. “When this RSI resistance confirms, there will be no long opportunities in the market until 2027 at the earliest,” the analyst concluded.
Reflecting on current conditions, the struggle between bulls and bears continues, adding to the uncertainty surrounding Bitcoin’s future trajectory. Despite the challenges, the cryptocurrency remains a focal point for investors and analysts alike, who are keenly monitoring its movements for any signs of significant shifts.
Bitcoin price chart from Tradingview.com
BTC price struggles with bears | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com
