Bitcoin's recent gains have hit a roadblock as it failed to consolidate above $27,000. Without positive news to push it higher, industry experts are looking at a chart analysis that suggests Bitcoin might drop to $20,000. This potential lower price point could serve as a new higher low, similar to its trajectory in 2019 before the halving event. Rekt Capital, a crypto analyst, highlights the significance of this revisit to the Macro Higher Low and suggests a potential retracement of approximately 27% from current prices.
Our analysis of the situation
Bitcoin, the behemoth of the cryptocurrency world, seems to have hit a roadblock in its recent upward trajectory. Despite failing to consolidate above the $27,000 mark, the biggest crypto star still captivates industry experts' attention. Rumors of a potential significant move towards $20,000 are floating in the digital air, making Bitcoin enthusiasts buckle up for an exhilarating ride.
The current situation has prompted crypto analyst Rekt Capital to whip out the charts and delve into the mystical realm of price predictions. With an analysis that harkens back to Bitcoin's historical patterns in 2019 before the halving event, Rekt Capital suggests that we might witness a revisiting of the $20,000 level. This could mark a new higher low on Bitcoin's 1-week chart, reminiscent of a roller coaster slowly ascending to its peak before embarking on a breathtaking drop.
While skeptics argue that such a descent is unlikely, citing the COVID-19 crash in March 2020 as a black swan event, Rekt Capital brings forth an interesting perspective. The magnitude of this potential plunge might be quite different from the previous catastrophe. The COVID-19 crash caused a tremor with a 72% drop, shaking the foundations of the crypto world. However, if the 2023 local top were to hover around $31,000, a revisit to the higher low would only necessitate a 37% decline.
Now, before your heart starts racing and panic sets in, remember that Rekt Capital doesn't anticipate a catastrophic collapse similar to that -72% crash. Instead, they propose a more moderate retracement of around 37% from Bitcoin's current trading price of $26,600. In the midst of it all, Bitcoin remains 210 days away from its halving in April 2024, playing into the script of the 2019 cycle where relief rallies preceded the formation of lower highs.
The crypto market presents a curious spectacle as Bitcoin appears to be participating in a similar relief rally once again. While Rekt Capital cautions against the necessity of a drastic crash or another black swan event, they suggest a retracement of approximately 27% could be on the horizon. Brace yourselves, fellow Bitcoin enthusiasts, for the bumpy road ahead.
As we navigate this roller coaster ride, it's crucial to acknowledge that uncertainty lingers. Will Bitcoin truly follow the path laid out in 2019? Or will it defy expectations and take a detour into uncharted territory? Only time will reveal the answer. In the meantime, keep your eyes peeled for a potential breakout, as Bitcoin's price teeters on a precipice, waiting to plunge or soar into the unknown.
(Note: The featured image is an artistic representation and does not directly relate to the content discussed in the article.)
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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