As Bitcoin hovers below the $20,000 mark for almost two years now, there are contrasting views on whether it will ever reach this high again. One analyst, however, has a different perspective. According to the analyst known as “Without Worries,” the Bitcoin price falling back to $20,000 is not a matter of if, but when. While the crash may not be imminent, it is essential not to dismiss the possibility altogether.
The recent analysis by “Without Worries” on the TradingView website sheds light on the potential for Bitcoin to crash back to $20,000. The focus is on the Bitcoin price movements using the 3-week chart, which has revealed significant insights. The Stochastics RSI, a crucial indicator of bull and bear cycles, has made notable moves. The Stochastics RSI rose above 80 and then crossed down to 50, signaling the buildup of resistance.
Reflecting on the past, the analyst highlighted instances of resistance in 2018 and 2019, which were followed by a downtrend. Similarly, in 2021, the resistance led to an average 70% decline in Bitcoin price. If history repeats itself, a 70% decline from the current all-time high would bring Bitcoin back to $20,000. Although this scenario is months away, it is a possibility investors should be aware of.
Contrary to the optimism surrounding Bitcoin’s future, the analyst does not foresee the bull run continuing until 2025. Despite calls for Bitcoin to reach new peaks, the analyst believes such predictions are unlikely to materialize. The market sentiment is still characterized by fear, indicating that the market has not yet reached its peak. The analyst argues that the peak will only occur when the market is in a state of euphoria.
The analyst warns that once the RSI resistance confirms, there will be limited long opportunities in the market until at least 2027. This cautionary outlook serves as a reminder for investors to stay vigilant and consider the potential for Bitcoin to revisit the $20,000 level. While the future remains uncertain, being prepared for various scenarios is crucial in the volatile world of cryptocurrency.
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