Bitcoin and the entire crypto market are currently in an uptrend which has been a cause for celebration for investors all across the space. However, not everyone expects this uptrend to continue. One crypto analyst has made a case for why Bitcoin and the crypto market at large could be headed for an epic crash.
Why Bitcoin And Crypto Will Crash
A crypto analyst who goes by Shelby on the TradingView platform has put forward an analysis of why the price rally will end in a massive crash. The analysis which began on October 24, 2023, starts out with expectations of a price rally for Ethereum to the $3,200 level before a breakdown to $200-$600.
A follow-up comment shows the expectation for ETH to actually reach $2,100. Or in special circumstances, reach $3,200 while Bitcoin runs up to $36,000 if the ETHBTC pair reaches 0.088 BTC. The second part of this has since played out in that the Bitcoin price has now crossed $36,000 but Ethereum continues to lag behind below $2,000.
This bullishness ends in 2023, however, as the analyst expects a crash to happen sometime between Q1 and Q2 2024. They liken this crash to the early 2020 crash that sent crypto rallies spiraling to new lows before the bull market began.
The price targets for this predicted crash would see the likes of Bitcoin and Ethereum fall more than 50% from their current levels. For Bitcoin, the analyst puts it at sub-$15,000 for the first half of 2024 and Ethereum at sub-$500.
However, it is not all gloom as the crypto analyst expects both assets to rally quite well leading up to 2025. “Given my expectation is BTC will top ~70k in 2025, ETH perhaps will top $ 5 – 10k. So buying altcoins in the looming crash will end up very lucrative.”
BTC rejected at $37,000 | Source: BTCUSD on Tradingview.com
What Happened In 2020?
The trend pattern for Bitcoin in 2019 is eerily similar to that of 2023 so far. Just like November 2023, the Bitcoin price had recovered in November 2019, taking the rest of the crypto market with it as well. This rise in price would continue on into the early parts of 2020, but that run would be cut short not long after.
Historical data shows that BTC’s price peaked just above $10,000 in February 2020, before the crash began. By March, the price of the asset had fallen almost 50% to $5,400 before the halving took place. This kind of crash is what the analyst is pointing to.
If there is a repeat of this, then the current Bitcoin rally could continue on to early 2024, likely reaching a peak of $40,000. But the market bottom might already be marked in November 2022, as a 50% fall would not bring the BTC price below $15,000.
Featured image from Kinesis Money, chart from Tradingview.com