Bitcoin Faces Potential Setback as Price Consolidation Fails
Bitcoin (BTC), the leading cryptocurrency, has hit a roadblock in its recent upward momentum as it struggles to stay above the $27,000 level. Without any positive macro news to propel BTC beyond resistance lines, industry experts are turning to chart analysis that suggests a possible significant drop towards $20,000.
Chart Analysis Points to a Lower Price Point
Crypto analyst Rekt Capital has shared a chart on X (formerly Twitter) indicating that Bitcoin could revisit the $20,000 mark, creating a new higher low on its 1-week chart similar to its trajectory in 2019 before the halving event.
This revisit to the Macro Higher Low could occur in early 2024, aligning with the halving year. Rekt Capital emphasizes the importance of this event in the current cycle. While some argue that another drop is unlikely due to the COVID-19 crash in March 2020, Rekt Capital highlights that the magnitude of the potential upcoming drop may differ significantly.
A retracement of -37% from current prices may be sufficient for Bitcoin to reach its Macro Higher Low without requiring another black swan event.
Bitcoin’s Similarities to Previous Cycles
With Bitcoin’s halving in April 2024 just 210 days away, Rekt Capital draws parallels to the 2019 cycle, where BTC experienced a relief rally before forming another lower high. Currently, Bitcoin seems to be going through a similar relief rally, suggesting that it may not need a drastic crash or another black swan event in the coming months to reach its Macro Higher Low. A retracement of approximately 27% from current prices could be enough.
Uncertainty Surrounds Bitcoin’s Future Path
Bitcoin is currently trading at $26,600, with a slight profit of 0.7% within the past 24 hours. While it remains uncertain whether Bitcoin will follow the path observed in 2019, what is clear is that the market is showing signs of stagnation, with a potential price breakout on either side looming.
Hot Take: Bitcoin Faces Potential Drop to $20,000
Bitcoin’s recent failure to consolidate above the $27,000 level has raised concerns among industry experts. Chart analysis suggests that BTC may be on the verge of a significant move towards $20,000, potentially establishing a new higher low. This lower price point could mimic Bitcoin’s trajectory in 2019 before the halving event. Although some argue against another drop due to the COVID-19 crash, a retracement of -37% from current prices may be enough to reach the Macro Higher Low. With Bitcoin’s halving approaching in April 2024, similarities to previous cycles indicate that a relief rally followed by another lower high could be expected. The market remains uncertain, but signs of stagnation suggest a possible price breakout in the near future.
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