Analyst Predicts Bitcoin Could Decline to $20,000 in Bear Market
Crypto analyst Rekt Capital believes that the current market structure of Bitcoin is similar to what was observed at the end of 2019. Despite recent price trends suggesting otherwise, they argue for a bearish pivot for BTC.
The graph presented shows that towards the end of 2019 and the beginning of 2020, Bitcoin traded within a narrow triangle with a vertex at $10,000. It eventually broke out from a resistance level and entered uncharted territory.
However, this breakout was short-lived as BTC later dropped below the critical support level of $3,250. Rekt Capital predicts a similar pattern as the price approaches the upper level of its current channel.
If this prediction holds true, Bitcoin could either drop to $20,000 or even reach the current cycle’s minimum of $15,000.
“The current Bitcoin market suggests that BTC’s price is now at its 2023 peak. But after the decline, there will likely be an accumulation phase before it goes up to the parabolic uptrend (green).”
Long-Term Bitcoin Price Forecast
Despite the potential short-term losses for Bitcoin holders, Rekt Capital argues that this bearish scenario is actually bullish for those with a long-term perspective. The price drop could simply be another retracement to $20,000, similar to previous patterns.
Rekt Capital also mentions that the upcoming Bitcoin halving event could cause the price to reach a historical maximum or even surpass it.
“In the next six months, the last rollback to the lower limit of $20,000 (orange color) can occur, and two months before halving we could see a stronger upward volatility. In the period before the halving, we may see significant upside and downside volatility.”
Hot Take: Analyst’s Bear Market Forecast for Bitcoin
According to Rekt Capital, there is a possibility of Bitcoin experiencing a decline to $20,000 in a bear market. Despite recent price trends suggesting otherwise, they believe that the current market structure resembles what was observed at the end of 2019. This prediction has implications for both short-term traders and long-term investors. Short-term losses could be expected for BTC holders, but for those playing the long game, this bearish scenario could simply be another retracement before reaching new highs. Additionally, the upcoming Bitcoin halving event adds further uncertainty to the market. Overall, it is important to consider these factors when making investment decisions in the crypto space.
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