- Bitcoin crashed by 11% in a single day, and the global crypto market cap is teetering on the verge of falling below $1 trillion.
- Analysts believe that BTC may still be on track for a new all-time high (ATH) in 2023, but it needs to stay above $24,800 to remain bullish.
- Bitcoin’s price action is similar to what it was in 2020 when it rallied from $18,000 to $60,000.
- Bitcoin’s RSI is at its most oversold level since the 2020 covid crash, which is a bullish sign.
- BTC is still trading safely atop its 2023 ascending triangle, but it needs to remain above this trendline to avoid a drastic drop to $20,000.
After spending months in a narrow range between $29,000 and $32,000, Bitcoin’s bulls finally gave up sometime last week.
Bitcoin shocked the market, plunging by as much as 11% to the $25,000 zone and pulling the rest of the market down with it.
And at the end of the day on Thursday last week, the global crypto market cap was teetering on the verge of falling below the $1 trillion mark.
Thousands of traders were kicked out of their positions, and there were billions of dollars worth of liquidations as the market turned red.
The question now is, “What comes after this”?
Will BTC consolidate a little more, and then sink further down to $20,000 as it erases all of its gains for 2023? Or will it use its current low as a stepping stone for greater heights?
Let’s go over a few facts together.
Bitcoin May Still Be On Track For A New ATH In 2023
This sounds crazy. No doubt about that.
BTC started to plunge downwards from its $69,000 high sometime in early November 2021 and hasn’t retested this zone ever since.
If BTC were to have a chance of hitting $69,000 again this year, it still has a rally of about 165% to make, as illustrated below.
However, you should know two things:
- Bitcoin has beaten even crazier odds in the past
- Two seasoned analysts seem to think a new ATH is possible
The first of these analysts is CrediBULL Crypto, a crypto analyst and trader, while the second is Ali.
Analysts Support The Bitcoin ATH In 2023 Idea
In a recent tweet, CrediBULL Crypto mentioned some very interesting things about Bitcoin’s price action.
For example, the tweet mentions that what we see on Bitcoin’s current chart is identical to what we had sometime in November 2020, when BTC was still at the $16,000 – $18,000 levels.
Citing fractals as his indicator of choice, the analyst mentions that back in 2020 when BTC behaved just like it is doing now, the rally that followed, catapulted the cryptocurrency from $18,000 to $60,000.
Judging from how Bitcoin rallied pretty quickly and ranged for months in both scenarios, the analyst mentioned that the goal of the big players may be re-accumulation:
A phase where BTC makes small but sharp movements up and down, liquidating (kicking out) unsuspecting traders, and helping the bigger players (whales and sharks) accumulate more liquidity (money).
The last time this happened, Bitcoin’s price went parabolic and cleared out a 200% rally in two months.
That was the last time, according to the analyst. This time around, we have about four more months until December 2023.
However, it comes with a catch: BTC has to stay above $24,800.
If BTC falls below this level, CrediBULL Crypto says that we may be eyeing lower targets and that we may need to reassess the cryptocurrency’s position.
Supporting CrediBULL Crypto’s position, another analyst, Ali had something to add.
In a comment under the original post, Ali mentioned in another tweet, that we need to wait for confirmation before a new ATH becomes possible.
Citing the parabolic SAR indicator moving above Bitcoin’s price on the weekly chart, Ali says that BTC must close above $31,700 again to signal a bullish trend reversal.
Bitcoin’s RSI Hits Historical RSI Level
More on bullish signs for BTC.
When the Covid-19 virus first hit in 2020, the crypto crash that followed was severe.
BTC was trading at around $10,000 in February at the time. And by March when the virus became the most widespread, Bitcoin crashed as low as $3,800.
According to Bitcoin Archive, a crypto analyst and commentator, the RSI readings back then and now, have some similarities.
In a tweet, the analyst mentioned that Bitcoin’s RSI now, is sitting at the most oversold levels on the daily charts since the 2020 Covid crash.
This is interesting because the RSI of any chart becomes oversold when prices drop so low, that the asset becomes undervalued.
Bitcoin Is Still On Track
In the charts, we can see that on a wider scale, BTC still appears to be on track.
The only issue is how close the cryptocurrency is to a drastic drop.
BTC is still trading safely atop its 2023 ascending triangle.
However, just as CrediBULL Crypto and Ali have iterated, the cryptocurrency has to remain above this trendline to remain bullish.
If BTC breaches the $25,000 – $24,800 zone, a drastic drop can be expected, as the cryptocurrency declines straight down to the $20,000 zone.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.