Bitcoin has dropped below $ 20,000: now what?

The value of the best-known cryptocurrency has been falling for several months. On the evening of June 18, bitcoin suffered another fateful drop, below $ 20,000. It may not stop there.

What seemed impossible a few months ago happened: the price of bitcoin dropped below $ 20,000 on Saturday, June 18, 2022. It traded for a few minutes at $ 17,744, according to data from Coin Market Cap. An extremely low level that bitcoin does not reached from December 2020.

The price of bitcoin has been falling for months, but falling below the $ 20,000 valuation is still bad news, which surprised some investors. Above all, many of them are wondering what will happen now for bitcoin. Will it start to rise again or could it continue to fall?

What will happen to bitcoin?

The evolution of the price of bitcoin is never really due to chance: the price of the asset responds more and more to the same factors as the traditional stock market. Financial analysts have thus created models to predict the future evolution of bitcoin and their work does not necessarily bring good news.

Bitcoin has behaved cyclically since its inception: periods of strong rises have always been followed by equally significant downturns. However, these cycles obeyed certain rules. The analysts had thus noticed that, even during periods of decline, bitcoin did not fall below its previous record value.

This behavior could be seen in the 2013/2014 cycle and November 2017. In the previous cycle, bitcoin reached a new all-time high at $ 19,497, a resistance level above which bitcoin should have remained, according to Analyses. But getting down to At $ 17,744 on June 18, the crypto asset briefly exited the pattern, Coin Desk noted. However, bitcoin has since rebounded – one bitcoin was trading on June 20 at around $ 20,000.

The peak of November 2017 begins to be affected by the drop in bitcoin in June 2022 // Source: coinmarketcap

A drop to $ 5,000?

However, this behavior does not allow us to say with certainty that bitcoin will go even lower – but it does not guarantee that it will remain around $ 20,000.

Trader and content creator CryptOdin, interviewed by Numerama, believed that bitcoin could hit ancient lows. He indicated two: the price zone occupied between July 2019 and October 202, which was between $ 11,500 and $ 14,000, or that between $ 5,000 and $ 7,000, which corresponds to the period before the last running of the bull bitcoin in 2020.

In addition to these forecasts, other external factors must also be taken into account, such as the increase in key central bank rates, which could hold back the cryptocurrency market, but also the appearance psychological. The continued decline of bitcoin in recent months could cause panic among some investors, who may choose to sell to reduce their losses and thus further lower the price of the latter.

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