In the midst of an unsettling calm in the Bitcoin market, some seasoned observers are predicting a return to the cryptocurrency’s previous all-time high of $20,000 or potentially even worse scenarios.
As Bitcoin’s price hovered above $26,000 by the end of the week on August 20, gloomy forecasts about its price trajectory persisted. Data from TradingView showed an 11% decrease in BTC/USD over the course of seven days.
Veteran market watchers are treading cautiously, with Keith Alan from Material Indicators indicating a potential breakdown of the $25,000 level. He sees the possibility of revisiting the support around the 2017 Bull Market Top, which was just below $20,000. Alan envisions this retracement as forming the basis for another upward rally, potentially within the $28,000 to $29,000 range.
Alan also pointed to the 100-week simple moving average (SMA) at $31,368 as a possible resistance level that could amplify the losses witnessed during the week.
There’s a growing consensus that if the $25,000 support fails, the $20,000 level could re-enter the picture as a significant milestone. Pseudonymous trader Skew noted that a dip below $25,000 might lead to a target range of $24,000 to $23,000.
A deeper decline towards $20,000 could even be considered as a potential entry point for long-term investors.
Despite this outlook, Skew hinted at the possibility of intraday price movements around the weekly close, suggesting that the $28,500 mark might become a focus if buying pressure becomes more prominent.
As the Bitcoin market continues to navigate these uncertain waters, analysts and traders are closely observing key levels and anticipating potential shifts in market sentiment.