Bitcoin is still in one of its longest downtrends so far. Although it has recently recovered, there is not enough upward momentum to truly guarantee that the market could move to another bull rally. Instead, the bearish trend is getting stronger, leading to speculation about when the bottom may be. It also raises the question of how much the value of digital assets can go down if it doesn’t already touch the bottom.
Whatever history says
When trying to figure out how far a digital asset like Bitcoin can go, it can often be helpful to look at how that asset has moved in the past. For Bitcoin, it is not difficult to see through its historical data that cryptocurrency has been around for more than a decade. Despite its relatively young age, its previous market movements provide ample data to analyze its movement patterns.
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Following previous bull markets, Bitcoin prices have fallen far short of expectations. An example is following the bull run of 2017 which saw the value of digital assets reach almost $ 20,000. What followed was a pull-out beer market that would last for the next three years. During this time, the value of the digital asset will fall by more than 80% from its all-time high, dropping to as low as $ 3,000, representing an 84% decline.
BTC continues recovery trend | Source: BTCUSD on TradingView.com
It also happened during the 2013/2014 bull rally when prices touched a high of $ 1,100 and then a low of $ 150. Given this, it is possible that the current price of Bitcoin may not be the end of the bearish trend.
How low can Bitcoin go?
In light of the above analysis, there may be a further downward trend for Bitcoin in the near future. It is considered that the market turned into a full-fledged bear market. This means that the bottom line may not be $ 20,000 for the current trend as widely believed.
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If Bitcoin follows its previous price movement, an 80% drop from the all-time high price means that digital assets will reach at least $ 13,000 before the beer market ends. This will be less than expected for digital resources.
Nevertheless, Bitcoin continues to resist bears. Monday morning saw digital assets once again rise above $ 30,000 and expect more momentum after the start of the trading week, with cryptocurrency well on its way to testing $ 35,000.
Featured image from DailyFX, chart from TradingView.com
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