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Crypto investors were ecstatic to see crypto prices rising in the previous week. However, this current week seems to have started on the wrong note. The crypto market is today down by more than 4%, with Bitcoin dropping yet again below the psychological price of $20,000. Does this mean that a Bitcoin crash is going to happen? In this article, we explain why is Bitcoin down, and we’ll see where will Bitcoin price reach next.
Bitcoin Down BELOW 20K – What Happened?
There are many factors that contribute to the fall of Bitcoin prices. In a previous article, we predicted that Bitcoin would reach a price of $27,500 in case the area of $22,500 was broken. However, this did not happen as prices retraced lower from that resistance area. In figure 1 below, we can see how Bitcoin is still consolidating since mid-Jun.
Now that prices fell below the $20,000 price mark, we expected that this drop will continue and reach the low of $18,500 again, as part of the sideway trend delimited by $18,500 and $22,500.
The Global Market is NOT doing Okay
Today marks the day when the EURO slipped lower than 1 USD since 20 years. Investors in Europe are panicking as the economical situation in the Eurozone collapses because of the Ukrain war with Russia. Cryptocurrencies seem to be reacting in that same panic, slipping more than 4% in the past 24 hours.
However, it is only a matter of time till investors realize that they can simply turn towards cryptocurrencies. Once this happens, the crypto market will definitely rise again, and Bitcoin prices will surely go back to their uptrend.
Bitcoin Price Prediction – Where will BTC Price reach?
Currently, there are 2 potential case scenarios for BTC prices:
- If prices manage to reach the price $20,500 again, we can expect to see Bitcoin back slightly above the price of $22,000.
- If prices fail to rally above 20K and breach the price of $19,500 lower, we can expect BTC to go back towards $18,500.
It is important to note that any breach of the $18,500 price mark lower would bring Bitcoin down towards lower price targets: $15,000, $12,000, and $10,000.