Bitcoin has not been in the $20,000 range for two years now and some believe the pioneering cryptocurrency will never reach this level again. However, according to one analyst, the Bitcoin price drop to $20,000 is a matter of when, not if. While they don’t expect this crash to happen anytime soon, they have warned that the possibility should not be ruled out at this time.
Bitcoin price could reach $20,000
Crypto Analyst “Without Worries”, in a new one analysis on the TradingView website has outlined the possibility of the Bitcoin price crashing to $20,000 again. The analysis focuses on the Bitcoin price on the 3-week chart, which showed some interesting insights into the movement of the digital asset.
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According to the crypto analyst, some significant events have occurred, creating the expectation that this will happen. One of these has to do with the Stochastics RSI, which has made some notable moves. As the crypto analyst notes, the Stochastic RSI had risen above 80 and eventually dropped back to 50.
This move in the Stochastic RSI, which happens to be one of the key indicators of bull and bear cycles, shows that resistance is increasing. At this point, the analyst advises investors to watch for confirmation of resistance that could signal the start of the downtrend.
Looking back, the crypto analyst revealed that resistance had previously emerged in 2018 and 2019. What followed was a downward trend. In 2021, resistance appeared again, and each time there was an average drop of 70% after resistance.
If this resistance were to reappear, historical performance would indicate that Bitcoin price would follow the same trend. In that case, a 70% drop from the current all-time high would mean the BTC price returning to the $20,000 level. However, according to the analyst, this will take months.
Will BTC recover in 2025?
On the topic of the Bitcoin bull run continuing into the year 2025, the crypto analyst does not believe this is possible. He believes that given the many calls for the pioneer cryptocurrency to reach new peaks, this will not happen.
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However, the analyst does not believe the market has peaked at this point. They point out that the market is still in fear, which is not an ideal time for the market to reach its top. Instead, the top will come when the market is in euphoria. “If this RSI confirms resistance, there won’t be long opportunities in the market until 2027 at the earliest,” the analyst said in closing.
Featured image created with Dall.E, chart from Tradingview.com