Crypto analyst Rekt Capital said the current Bitcoin market structure mimics dynamics seen at the end of 2019. In a recent price forecast, they argued for a bearish BTC pivot despite recent price trends suggesting otherwise.
Analyst Sees Bitcoin Decline to $20,000 in Bear Market
The graph below shows that, at the end of 2019 and the start of 2020, Bitcoin traded in a narrow triangle whose vertex reached $10,000. It soon broke out from a resistance level into uncharted territory.
However, the breakout price action was short-lived, since BTC later dropped below the $3,250 critical support level. Rekt Capital predicts similar behavior as the price approaches the upper level of its current channel.
If the prediction proves true, then Bitcoin could return to $20,000 or drop to the current cycle minimum of $15,000.
Long-Term Bitcoin Price Forecast
Although this analysis implies Bitcoin holders could experience short-term losses, Rekt Capital argues it is bullish for those playing the long game. A price drop could simply be the newest of several previous retracements to $20,000.
The upcoming Bitcoin halving could cause the price to reach a previous historical maximum or update it. Rekt Capital concludes,
“In the next six months, the last rollback to the lower limit of $20,000 (orange color) can occur, and two months before halving we could see a stronger upward volatility. In the period before the halving, we may see significant upside and downside volatility.”
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