As Bitcoin hovers far below its peak of $20,000, one analyst has predicted that the cryptocurrency will inevitably fall back to this level once again. The analyst, known as “Without Worries”, has outlined the possibility of Bitcoin crashing to $20,000 in a recent analysis on TradingView.
Key Indicators Point to Resistance
The analysis focuses on the Bitcoin price chart over a three-week period, revealing key insights into the movement of the digital asset. One of the most significant indicators highlighted by the analyst is the Stochastics RSI, which has shown notable activity. The Stochastic RSI recently moved above 80 and then dipped back down to 50, indicating growing resistance.
The analyst advises investors to remain vigilant for confirmation of resistance, as it may signal the beginning of a downtrend. Historical data provided by the analyst shows that resistance has appeared in 2018, 2019, and most recently in 2021, with each instance followed by a 70% decline in the Bitcoin price. If this trend were to continue, it could lead to another crash to the $20,000 level.
Market Sentiment and Future Projections
Despite calls for Bitcoin to reach new all-time highs, the analyst does not believe that a bull run lasting until 2025 is feasible. The market is currently gripped by fear, indicating that a peak is not yet in sight. The analyst predicts that the market will only reach its peak when euphoria sets in, which may not be until 2027 at the earliest.
While a crash to $20,000 is not imminent, the analyst’s analysis suggests that Bitcoin may be heading towards another significant correction. Investors should carefully monitor key indicators such as the Stochastics RSI for signs of resistance, which could indicate a potential downtrend in the future. As market sentiment continues to fluctuate, only time will tell whether Bitcoin will revisit the $20,000 level once again.