bitcoin and the entire cryptocurrency market are currently in an uptrend that has been cause for celebration for investors across the space. However, not everyone expects this bullish trend to continue. A crypto analyst has explained why bitcoin and the broader crypto market could be headed for an epic crash.
Why bitcoin and cryptocurrencies will collapse
A crypto analyst who goes by the name Shelby on the TradingView platform has filed a analysis why the price rally will end in a massive drop. The analysis that began on October 24, 2023, begins with expectations of a rally in ethereum price to the $3,200 level before a drop to $200-$600.
A follow-up comment shows the expectation that eth will actually reach $2,100. Or, in special circumstances, reach $3,200 while bitcoin rises to $36,000 if the ETHBTC pair reaches 0.088 btc. The second part of this has since developed in that the price of bitcoin has now surpassed $36,000, but ethereum continues to lag behind below $2,000.
However, this optimism ends in 2023, as the analyst expects a drop to occur sometime between the first and second quarter of 2024. They compare this drop to the drop in early 2020 that caused cryptocurrency rallies. They would shoot to new lows before the bull market began.
Price targets for this predicted drop would see bitcoin and ethereum drop more than 50% from their current levels. For bitcoin, the analyst places it at less than $15,000 for the first half of 2024 and ethereum at less than $500.
It’s not all doom and gloom, however, as the crypto analyst expects both assets to recover quite well through 2025. “Given my expectation that btc will surpass ~70,000 in 2025, eth perhaps surpasses $5-10,000. Therefore, buying altcoins in the coming crisis will end up being very lucrative.”
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/11/Analyst-Predicts-Bitcoin-and-Crypto-Market-Crash-of-Epic-Proportions" alt="Tradingview.com bitcoin Price Chart (crypto)” width=”2650″ height=”1758″ loading=”lazy”/>
btc rejected at $37,000 | Source: BTCUSD on Tradingview.com
What happened in 2020?
bitcoin‘s trend pattern in 2019 is eerily similar to that of 2023 so far. Just like in November 2023, the price of bitcoin recovered in November 2019, taking the rest of the cryptocurrency market with it as well. This price increase would continue until early 2020, but would be discontinued shortly after.
Historical data shows that the btc price peaked at just over $10,000 in February 2020, before the decline began. In March, the asset’s price had fallen almost 50% to $5,400 before the halving occurred. This type of crisis is what the analyst is pointing to.
If this repeats, then bitcoin‘s current rally could continue until early 2024, likely peaking at $40,000. But the market bottom may already be marked in November 2022, as a 50% drop would not take the btc price below $15,000.
Featured image of Kinesis Money, chart from Tradingview.com
