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Crypto analyst Rekt Capital said the current Bitcoin market structure mimics dynamics seen at the end of 2019. In a recent price forecast, they argued for a bearish BTC pivot despite recent price trends suggesting otherwise.
Analyst Sees Bitcoin Decline to $20,000 in Bear Market
The graph below shows that, at the end of 2019 and the start of 2020, Bitcoin traded in a narrow triangle whose vertex reached $10,000. It soon broke out from a resistance level into uncharted territory.
However, the breakout price action was short-lived, since BTC later dropped below the $3,250 critical support level. Rekt Capital predicts similar behavior as the price approaches the upper level of its current channel.
If the prediction proves true, then Bitcoin could return to $20,000 or drop to the current cycle minimum of $15,000.
“The current Bitcoin market suggests that BTC’s price is now at its 2023 peak. But after the decline, there will likely be an accumulation phase before it goes up to the parabolic uptrend (green).”
Read more: Bitcoin Halving Cycles and Investment Strategies: What To Know
Long-Term Bitcoin Price Forecast
Although this analysis implies Bitcoin holders could experience short-term losses, Rekt Capital argues it is bullish for those playing the long game. A price drop could simply be the newest of several previous retracements to $20,000.
Read more: How to Buy Bitcoin (BTC) in Four Easy Steps – A Beginner’s Guide
The upcoming Bitcoin halving could cause the price to reach a previous historical maximum or update it. Rekt Capital concludes,
“In the next six months, the last rollback to the lower limit of $20,000 (orange color) can occur, and two months before halving we could see a stronger upward volatility. In the period before the halving, we may see significant upside and downside volatility.”