Bitcoin, the pioneer cryptocurrency, has been trading below the $20,000 range for nearly two years now. While some may believe that Bitcoin will never reach this level again, a prominent analyst suggests otherwise. In a recent analysis on the TradingView platform, the analyst known as “Without Worries” discussed the possibility of Bitcoin crashing back to $20,000 in the future. While the analyst does not predict an imminent crash, they caution against dismissing the possibility altogether.
The analysis focuses on the movement of the Bitcoin price on a 3-week chart, particularly highlighting the Stochastics RSI indicator. According to the analyst, the Stochastics RSI made significant movements, moving above 80 and then back down to 50. This particular movement is viewed as a crucial signal of resistance building in the market. Investors are advised to pay close attention to confirmations of resistance, which could indicate the beginning of a downtrend.
The analyst points out historical instances where resistance appeared in 2018, 2019, and 2021. Each time resistance emerged, there was an average 70% decline in the Bitcoin price. If this pattern were to repeat, it is conceivable that Bitcoin could plummet back to the $20,000 level once more. However, the analyst suggests that this scenario is likely months away from materializing.
Contrary to the belief that Bitcoin’s bull run will continue into 2025, the analyst expresses skepticism. Despite widespread calls for Bitcoin to reach new peaks, the analyst does not anticipate this outcome. They argue that the current market sentiment is still characterized by fear, indicating that the market has not yet reached its peak. The analyst predicts that the market will only reach its top when euphoria sets in.
The analyst suggests that once the RSI resistance confirms, there will be limited long opportunities in the market until at least 2027. This cautious outlook underscores the uncertainty and volatility inherent in the cryptocurrency market. While the possibility of Bitcoin crashing back to $20,000 cannot be dismissed, it also highlights the need for investors to exercise diligence and caution in their decision-making process within this ever-evolving landscape.