The Possibility of Bitcoin Falling Back to $20,000

The Bitcoin price has not reached the $20,000 level for almost two years, leading some to believe that it may never return to that range. However, an analyst known as “Without Worries” has a different perspective. According to their analysis on TradingView, the possibility of Bitcoin crashing back to $20,000 is not a question of if, but when. While the crash is not expected to happen in the near future, the analyst warns that it should not be ruled out entirely.

The analysis focuses on the Bitcoin price on the 3-week chart, revealing some intriguing insights into the movement of the digital asset. One of the key indicators highlighted by the analyst is the Stochastics RSI, which has exhibited significant movements. The Stochastic RSI crossed above 80 and then dipped back down to 50, signaling a building resistance. This movement in the Stochastic RSI, a crucial indicator of bull and bear cycles, suggests that a downtrend may be on the horizon.

Looking back at historical data, the analyst points out that previous instances of resistance in 2018 and 2019 were followed by a downtrend in the Bitcoin price. This trend continued in 2021, with a 70% decline following the appearance of resistance. If history were to repeat itself, a 70% decline from the current all-time high would bring the Bitcoin price back to $20,000. While this scenario is months away from unfolding, it is essential for investors to be aware of the possibility.

The analyst also casts doubt on the continuation of the Bitcoin bull run into 2025. Despite calls for the cryptocurrency to reach new peaks, the analyst believes this is unlikely. They argue that the market is currently in a state of fear, indicating that a market top is not imminent. The analyst predicts that the market will only reach its peak when euphoria sets in. Until then, the analyst suggests that there will be no long opportunities in the market until at least 2027.

While the prospect of Bitcoin falling back to $20,000 may seem remote at the moment, the analyst’s analysis reveals important indicators that suggest otherwise. It is crucial for investors to monitor the market closely for signs of resistance and be prepared for potential downturns in the Bitcoin price.