It has been nearly two years since Bitcoin reached the $20,000 mark, causing many to speculate that it may never return to this level. However, one analyst has a different viewpoint, suggesting that a drop back to $20,000 is not a matter of if, but when. This analyst, known as “Without Worries”, has recently shared a new analysis on the TradingView platform, outlining the potential for Bitcoin to plummet to $20,000 once more.
The analysis conducted by “Without Worries” focuses on Bitcoin’s price action on the 3-week chart, revealing some intriguing insights into the cryptocurrency’s movement. One of the significant events identified in the analysis is related to the Stochastics RSI, a key indicator of bull and bear cycles. The Stochastic RSI recently moved above 80 before crossing back down to 50, indicating the emergence of resistance. The analyst advises investors to keep a close eye on this resistance level as it could signal the beginning of a downtrend.
Looking back at past occurrences, the analyst highlights similar resistance points in 2018 and 2019, leading to significant price declines. In 2021, the resistance reappeared, suggesting a potential 70% decrease from the all-time high. If this trend were to continue, Bitcoin could indeed fall back to $20,000. However, the analyst cautions that this scenario is likely months away from materializing.
Contrary to popular belief, the analyst does not foresee the Bitcoin bull run extending into 2025. Despite many expectations for new price records, the analyst remains skeptical. They argue that the market’s current state of fear does not align with a market peak. Instead, the analyst predicts that the market will reach its top during a period of euphoria. As a result, they suggest that there will be no significant long opportunities in the market until at least 2027.
The possibility of Bitcoin falling back to $20,000 is a scenario that investors should not dismiss. While the exact timing remains uncertain, it is essential to monitor key indicators and historical trends for potential market movements. As the cryptocurrency landscape continues to evolve, staying informed and prepared for various scenarios is vital for navigating this volatile market.
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