Bitcoin, the pioneer cryptocurrency, has had a tumultuous journey over the past few years. With its price hitting an all-time high of $20,000 two years ago, many believed that it would never revisit this level again. However, according to one analyst, the possibility of Bitcoin falling back to $20,000 is not something that can be ruled out.
The analysis conducted by the crypto analyst known as “Without Worries” on the TradingView website focuses on the Bitcoin price on the 3-week chart. The analyst points out some important events that have taken place, indicating the potential for the Bitcoin price to crash to $20,000 once again.
One key indicator highlighted by the analyst is the Stochastics RSI, which has shown some interesting movements. The Stochastics RSI moved above 80 and then crossed back down to 50, indicating that resistance is building. This movement in the Stochastics RSI is considered a significant indicator of bull and bear cycles in the cryptocurrency market.
Looking back at historical data, the analyst revealed that resistance had appeared in 2018 and 2019, leading to a downtrend in the Bitcoin price. Similarly, in 2021, resistance appeared again, with an average 70% decline following it. If this resistance were to reappear, historical performance suggests that the Bitcoin price could once again fall to the $20,000 level.
While this scenario may seem plausible, the analyst notes that it is still months away from playing out. Additionally, the analyst dismisses the idea of the Bitcoin bull run continuing into the year 2025. Contrary to popular belief, the analyst does not foresee the pioneer cryptocurrency reaching new peaks in the near future.
The analyst points out that the market is currently in a state of fear, which is not conducive to reaching its top. According to the analyst, the market will only reach its peak when it is in a state of euphoria. The analyst predicts that there will be no long opportunities in the market until at least 2027, once the RSI resistance confirms.
While some may be optimistic about the future of Bitcoin, it is important to consider the potential for the price to fall back to $20,000 based on historical performance and market indicators. The crypto analyst’s analysis offers valuable insights into the possible scenarios that could play out in the coming months and years.