Bitcoin hasn’t hit the $20,000 mark in two years and some believe the pioneer cryptocurrency will never reach that level again. However, according to one analyst, it’s just a matter of when, not if, that Bitcoin price will fall back to $20,000. While they don’t expect that crash to happen anytime soon, they have warned that the possibility shouldn’t be ruled out at this point.
Bitcoin price could reach $20,000
Crypto analyst Without Worries has highlighted the possibility that Bitcoin price could crash to $20,000 again in a new analysis on the TradingView website. The analysis focuses on Bitcoin price in the 3-week chart, which offered some interesting insights into the movement of the digital asset.
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According to the crypto analyst, some important events have taken place that are creating expectations that this will happen. One of them has to do with the Stochastics RSI, which has made some notable moves. As the crypto analyst points out, the Stochastic RSI had risen above 80 and then eventually dropped back to 50.
This movement of the Stochastic RSI, which happens to be one of the most important indicators of bull and bear cycles, shows that resistance is building up. At this point, the analyst advises investors to watch for a confirmation of resistance, which could signal the start of the downtrend.
Looking back, the crypto analyst noted that there had already been resistance in 2018 and 2019. What followed was a downtrend. Then resistance appeared again in 2021, and each time the resistance was followed by an average decline of 70%.
If this resistance were to resurface, historical trends would suggest that Bitcoin price would follow the same trend. In this case, a 70% drop from the current all-time high would mean BTC price returning to the $20,000 mark. However, according to the analyst, it will still take months for this to come to fruition.
Will BTC rise by 2025?
The crypto analyst addresses the question of whether the Bitcoin bull run will continue into 2025, but does not think it is possible. He believes that this will not happen given the many calls for the pioneer cryptocurrency to reach new highs.
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However, the analyst does not believe that the market has peaked at this point. He points out that the market is still stuck in fear, which is not an ideal time for the market to peak. Instead, the peak will come when the market is in euphoria. “If this RSI resistance is confirmed, there will be no long opportunities in the market until 2027 at the earliest,” the analyst concluded.
Featured image created with Dall.E, chart from Tradingview.com
