There has been much speculation about whether Bitcoin will ever reach the $20,000 mark again, with some believing it to be a distant memory. However, one analyst has a different perspective, suggesting that the possibility of Bitcoin falling back to $20,000 is not a question of if, but when. While the analyst does not predict an imminent crash, they caution against ruling out this scenario entirely. In a recent analysis on TradingView, crypto analyst “Without Worries” highlighted the potential for Bitcoin to revisit the $20,000 level, based on insights from the 3-week chart.
The analysis pointed to significant events, particularly the movement of the Stochastics RSI, as indicators of a potential downtrend. The Stochastic RSI, a key metric for identifying bull and bear cycles, exhibited a noteworthy shift by moving above 80 and then reversing course to fall below 50. This directional change in the Stochastics RSI suggests a buildup of resistance in the market. The analyst advised investors to monitor for confirmation of this resistance, signaling a possible onset of a downtrend.
Reflecting on past occurrences, the analyst highlighted instances of resistance in 2018 and 2019, followed by significant declines in the Bitcoin price. Similarly, in 2021, a resistance level emerged, leading to an average 70% decrease in price. If history were to repeat itself, a 70% decline from the current all-time high would bring Bitcoin back to the $20,000 mark. However, the analyst suggested that this scenario is still months away from unfolding.
Regarding the continuation of the Bitcoin bull run into 2025, the analyst expressed skepticism. Despite widespread expectations for Bitcoin to achieve new highs, the analyst dismissed the possibility, citing ongoing market fear as a hindrance to reaching its peak. The analyst argued that the market would only reach its top when euphoria prevails, indicating a more prolonged timeline for any potential resurgence.
While the prospect of Bitcoin dropping to $20,000 presents a plausible scenario based on historical patterns and current market indicators, the timing and extent of such a decline remain uncertain. Investors are advised to closely monitor resistance levels and market sentiment for potential signals of a downtrend. As the analyst emphasized, the market’s trajectory beyond the near future is contingent on the confirmation of resistance and the eventual transition to a period of euphoria, marking a pivotal shift in the long-term outlook for Bitcoin.
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