Bitcoin has reached its highest level in six weeks, but some analysts are still predicting a drop back to $20,000. Despite the cryptocurrency’s 6% increase over the past month and its current price of around $27,500, many remain skeptical of its future performance.
One analyst, known as CryptoBullet, believes that October will be a bearish month for Bitcoin. He points to the formation of a classic “head and shoulders” chart pattern, with the latest rise to $28,600 as the right-hand shoulder. According to this analysis, if the pattern completes, a downturn is expected, with a target price of $20,000. CryptoBullet also suggests that the bottom zone for BTC/USD lies between $19,000 and $21,000.
However, not all experts share this pessimistic view. Another popular trader, Elizy, expressed skepticism about the likelihood of Bitcoin dropping to such low levels.
These concerns over the future of Bitcoin are not isolated. Joao Wedson, the founder and CEO of crypto trading resource Dominando Cripto, compared Bitcoin’s performance between 2020 and 2022 and noted a similar pattern. After a significant appreciation in value, Bitcoin experienced a major correction that sent prices plummeting. Wedson suggests that history could repeat itself, potentially pushing Bitcoin back below $20,000.
Another analyst, Rekt Capital, is calling for bullish support to protect Bitcoin from a long-term retracement.
It is important to note that this article does not provide investment advice or recommendations. Investing in Bitcoin or any other cryptocurrency carries risks, and individuals should conduct their own research before making any decisions.
Overall, while Bitcoin has seen recent gains, there are still concerns about its long-term performance. The possibility of the price returning to $20,000 or even lower remains a topic of debate among analysts and traders. Investors should proceed with caution and closely monitor the market for any significant developments.