Bitcoin

This is Why Bitcoin (BTC) Price Dropping Below $20K Seems Inevitable!

Written by: Nidhi Kolhapur

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Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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Jun 6, 2022

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On Monday, June 6, the global cryptocurrency market showed signs of life when Bitcoin closed in the green for the first time in nine weeks, following weeks of losses. After staying flat the day before, the cryptocurrency market started the day in the green, climbing 3 percent in the previous 24 hours. The worldwide crypto market cap now stands at $1.28 trillion.

After days of trading below the S30,000 mark, Bitcoin finally broke beyond the $31,000 barrier. At the time of writing this article, the price of bitcoin was $31,339. On May 6, the price of bitcoin verified a bear flag setup by breaching the pattern’s lower trend line.

This action resulted in a 36 percent drop in a week. Zooming out, the pattern’s flagpole was generated by BTC’s fall from an all-time high of $69,000 to $32,837 between November 10, 2021, and January 24, 2022.

Will BTC drop to $18,000 levels?

Between January 14 and May 22, the price of Bitcoin solidified in the form of higher lows and higher highs, forming an ascending parallel-like structure known as a flag.

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The aim of this technical formation is $18,179, which was confirmed when Bitcoin’s price fell below $38,305. Bitcoin’s price has arrested its decline so far, settling around the $30,000 psychological mark. A daily candlestick closure below this level will almost certainly lead to a further drop to the goal of around $20,000.

While this pattern has been in place for some time, the recent consolidation appears to have generated another bear flag, predicting a 30% drop to, roughly, the same objective of $20,000. Furthermore, this development opposes a relief rally to $35,000 or higher. As a result, investors must exercise caution as BTC consolidates with no directional bias.

While the Bitcoin price is currently bearish, a surge in purchasing pressure that takes BTC to $35,000 will invalidate the bear sign. From a macro standpoint, if the large crypto bulls push the asset to a higher high above $52,000, the massive bearish argument will be debunked. In this event, Bitcoin’s price might rise much more, possibly retesting its all-time high of $69,000.

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Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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