Bitcoin has been trading below $20k since 11.49 PM, August 28. Prior to that point, the price of the digital currency crossed the $20k level 43 times in 24 hours, indicating that the $20k level is going to be a strong resistance on the way up after the coin has bottomed.
$12k or All The Way To $5k?
According to a market analyst, aQua, this should be expected around the $12k-$14 region, but before then, we should expect a bounce at $17k.
Another analyst, James Martins @martinjlm, says that the price of BTC would go all the way down to $10k before reversing upwards.
While many analysts believe that the price of BTC is going lower, only a minority are predicting that it would fall as low as $5k.
“It means also , btc down under 20k more than 43 times btc not crossing until we see 10k or even more” says Mido Dragon @dollarstar2012.
Meanwhile, the coin market has witnessed a liquidation of nearly $12 billion today as many investors look to cut their losses. The global coin market capitalization dropped from $966 billion to $954 billion.
More Dumping Predicted
According to FieryTrading, the BTC breakout of a bear flag pattern is an indication that things will get worse. The analyst is of the opinion that there will be more dumping of the cryptocurrency in the coming days.
Using Stochastic RSI, he predicted that the expected dump won’t be different from what happened in 3 similar scenarios in the past.
“The previous 3 times this occurred, it unprecedented a bearish move, of which two were dumps larger than 40%.
Will we see another 8-10 weeks of bearish price action? Possibly. September is historically a very bad month for crypto, so I wouldn’t be surprised if we continue to dump for the coming weeks. “
On the 4H chart, it is obvious that the price of BTC is on the down trend. This is using the 20-day moving average indicator. The RSI indicator is currently reading 33. This means that the coin is not yet oversold but close to the oversold region.