The possibility of Bitcoin price falling back to $20,000 is a matter of when, not if, according to one analyst. While many believe that Bitcoin will never revisit the $20,000 mark, this analyst warns that the possibility should not be ruled out at this point. Without Worries, a crypto analyst, recently outlined the possibility of Bitcoin price crashing to $20,000 in a new analysis on the TradingView website.
The analysis focuses on the Bitcoin price on the 3-week chart, revealing some interesting insights into the movement of the digital asset. One significant indicator highlighted in the analysis is the Stochastics RSI, which has made some notable moves. The Stochastic RSI moved above 80 and then crossed back down to 50, indicating that resistance is building. This move in the Stochastic RSI is a crucial indicator of bull and bear cycles, suggesting a potential downtrend.
Looking back, the analyst pointed out that resistance had previously appeared in 2018 and 2019, leading to a significant downtrend. In 2021, a similar resistance appeared, resulting in an average 70% decline following the resistance. If this resistance were to reappear, historical performance indicates that the Bitcoin price could plummet to $20,000 once again. However, the analyst believes that this scenario is still months away from playing out.
Contrary to the belief that the Bitcoin bull run will continue into 2025, the analyst does not see this as a possibility. With many predicting new peaks for the pioneer cryptocurrency, the analyst argues that the market conditions do not support such a scenario. The market is currently in fear, which is not conducive to reaching new highs. The analyst suggests that the market will only peak when it is in a state of euphoria.
The analyst predicts that when the RSI resistance confirms, there will be no long opportunities in the market until at least 2027. This projection reinforces the idea that the Bitcoin price may indeed fall back to $20,000 in the future. While the timing of this potential crash remains uncertain, investors are advised to watch out for signs of resistance that could signal the beginning of a downward trend.
