Bitcoin (BTC) Price Plunge of More than 40% Approaching Fast, Could hit $22,700 or Below $20,000: Analyst
Bitcoin in the recent past faced a notable death cross and since then the prices have dropped massively by nearly 40% until the press time. Death cross usually refers to 200-day MA levels crossing the 50-day MA levels in a daily chart and heading towards the south. Often, this event is considered pretty bearish which squeezes a significant portion of the value.
In a series of tweets, a popular analyst believes the death cross should dive the BTC price to as low as $20,000 very soon.
The analyst here summarized the past death cross events and analyzed the time taken for the asset to recover. The events that occurred in 2013 took 135 days from their peak to occur and the BTC prices dropped more than 70% then. After reaching the highs, the bearish trend had already dropped the BTC price by 70% and the death cross further declined the price by another 70%.
Further in 2017, after 107 days from reaching its peak, the death cross declined the BTC price by 65% which had already dropped 70% before the event. And in 2019, the prices were slashed by 53% before the death cross and 55% after the event. But 2021 manifested a different scenario, where the asset rallied by more than 140% after the death of cross.
Therefore, considering the price action in the past history, analyst predicts that the BTC price may hit $22,700 very soon.
Collectively, considering the above analysis, it may be assumed that the Bitcoin price may not have reached the bottom yet. Therefore, the analyst believes the current price slash is the decline before the death cross and hence more price drain is yet to come. Therefore, if the history repeats, then the BTC price may drop hard by another 65% to reach the lows below $20,000.