The current state of Bitcoin’s price has left many wondering if it will ever reach the $20,000 mark again. While some believe this milestone is a thing of the past, one analyst argues that the possibility of Bitcoin crashing back to $20,000 is not a matter of if, but when. This analysis dives deep into the potential factors that could lead to such a crash and offers a critical perspective on the future of the pioneer cryptocurrency.
The analysis conducted by Crypto analyst “Without Worries” on the TradingView website sheds light on the potential scenario of Bitcoin’s price plummeting back to $20,000. The focus of the analysis is on Bitcoin’s price movement on the 3-week chart, revealing some intriguing findings that point towards a possible downturn in the near future.
One of the key indicators highlighted in the analysis is the Stochastics RSI, which has shown significant movements in recent times. The Stochastic RSI moving above 80 and then crossing back down to 50 is seen as a critical signal of resistance building up. This indicator plays a crucial role in determining bull and bear cycles in the market, making it essential for investors to pay close attention to any signs of resistance.
The analysis also delves into the historical performance of Bitcoin during times of resistance. By looking back at previous instances in 2018 and 2019, as well as in 2021, the analyst points out that each time resistance appeared, it was followed by an average decline of 70% in the Bitcoin price. If this trend were to continue, it could lead to Bitcoin revisiting the $20,000 level once again.
In terms of the future outlook, the analyst offers a critical perspective on the continuation of the Bitcoin bull run. While some anticipate the bull run to extend into 2025, the analyst argues against this possibility. With the market still being in a state of fear rather than euphoria, the analyst believes that the peak of the market has not been reached yet.
The analysis provides a thought-provoking take on the potential for Bitcoin to plummet back to $20,000. While the timeline for such a crash is uncertain, the critical insights offered by the analyst signal a need for investors to exercise caution and remain vigilant in monitoring market trends. As the market continues to evolve, only time will tell if Bitcoin will indeed revisit the $20,000 level once again.
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