Bitcoin (BTC) is a leading cryptocurrency by market value, and has been in a horizontal trend since its level of $28000 fell. As of the time of writing this article, BTC's current value is $26800, which has experienced a significant decline in all time frames
Bitcoin (BTC) is a leading cryptocurrency by market value, and has been in a horizontal trend since its level of $28000 fell. As of the time of writing this article, BTC's current value is $26800, which has experienced a significant decline in all time frames. The question that everyone is thinking about now is whether this downturn will continue, or whether Bitcoin will collapse again.
Can Bitcoin holders experience another 40% decline in the next few weeks
Cryptocurrency enthusiasts and traders are closely monitoring the performance of Bitcoin after recent price declines.according toAccording to seasoned cryptocurrency analyst Miles Deutsche, Bitcoin typically experiences a brief rebound after a decline and then reaches a new low after 5-8 weeks.
Deutsche's analysis shows that in 2020, the price of Bitcoin fell by 56% within 59 days of its initial rise. Similarly, in 2021, Bitcoin prices fell by 24% within 47 days, and in 2022, Bitcoin prices fell by 42% within 40 days.
Nevertheless, the trading price of BTC is $26800. If it drops by 20%, its price may drop to $21440, while a 30% drop would drop to $18760. A 40% drop will lead to a price of $16080, which may bring Bitcoin back to its lowest point in the 2022 bear market.
Will 2023 be the best year for BTC?
on the other hand,according toAccording to cryptocurrency analyst Adrian Zdunczyk, historical data shows that the year before the election was the best performing year on Bitcoin's record, with a 98.8% chance of a bull market in 2023. Although the worst six months of the year usually start in May, Zdunczyk believes that there may be a bullish trend in the coming months.
Looking at the weekly chart, Zdunczyk pointed out that Bitcoin is currently undergoing a complete regression of the 200 week trend, completing the mean regression. Although there is a strong correlation (0.42) between Bitcoin and the S&P 500 index, the key support around $25000 has been defended. However, if this support level is broken, traders may see prices fall below the $20000 range.
In addition, Zdunczyk believes that if Bitcoin remains below $30000, there may be more downside space. However, after successfully retesting the 200 day benchmark, the support level has been confirmed by various technologies. Meanwhile, the 50 day moving average has deteriorated and the long-term trend has temporarily run out.
Zdunczyk's analysis indicates that the clear head and shoulder shape has been completed, with a technical breakthrough target of $22000. However, if this mode fails to break through, it may trigger a cascade rebound of over $35000.
As shown in the above figure, supported by BirbicatorPRO (BPRO) analysis, the local resistance is currently at $28000. Short positions remain under control until the closing price exceeds this level. Bitcoin bulls must wait for a decisive breakthrough of over $30000 to ensure a more reliable upward trend.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
