Bitcoin, the most popular and valuable cryptocurrency, has recently experienced a sharp drop in price, with a -10% decline in a single day. This decline has caused widespread concern among investors, many of whom are now asking whether Bitcoin will crash to 20K. In this article, we will explore the reasons behind the drop in Bitcoin’s price and assess the likelihood of a recovery.
Why is Bitcoin Price Down?
There are several reasons why Bitcoin’s price has dropped so sharply. Firstly, the market failed to break through the $30,000 resistance level, which many analysts had predicted would be a key level for Bitcoin to regain momentum. Secondly, there have been tightening regulations on cryptocurrencies in the US, with regulators taking a harder line on crypto exchanges and their operations. Thirdly, the continued bankruptcies of crypto exchanges, such as Bittrex, have added to the negative sentiment in the market.
These factors have all contributed to the recent decline in Bitcoin’s price. However, it’s important to note that cryptocurrencies are highly volatile, and price swings of this magnitude are not uncommon.
Will Bitcoin Recover?
The million-dollar question on every investor’s mind is whether Bitcoin will recover from its recent decline. The answer is currently uncertain. While over the long term, prices should definitely recover, currently, we are in a strong downtrend. Prices have breached the strong support of $27,000, which hints at lower price targets over the coming days.
However, it’s worth noting that Bitcoin has experienced sharp declines before, only to recover and reach new highs. For example, in 2017, Bitcoin’s price fell by almost 50% in just a few days, but it eventually went on to hit an all-time high of almost $65,000 in 2021.
In the short term, it’s difficult to predict with certainty whether Bitcoin will recover or not. There are many factors that could impact the price, such as government regulations, adoption by mainstream companies, and market sentiment. However, it’s important for investors to remain calm and not panic in times of market volatility.
Bitcoin Price Prediction: Will Bitcoin crash to 20K?
Since Bitcoin broke the 27K support price lower, we expect Bitcoin to continue to crash over the short term. The next price target of Bitcoin is the $24,000 price mark as shown in figure 2 below. From there, Bitcoin should rebound higher and determine whether prices are going to pick back up or crash to 20K.