This week was a harsh one for the crypto community. Prices were expected to retrace higher after a significant drop. However, crypto prices continued to dip lower and reached critical areas for many cryptos. Bitcoin is one of those cryptocurrencies that reached the vital price of $20,000. This psychological price is key as any further price drops will lead Bitcoin to reach lower price targets. Is Bitcoin down? Where will Bitcoin price reach? Let’s analyze in this Bitcoin price prediction article.
The Crypto Market is DOWN – What Happened?
The crypto market as a whole was consolidating around a market cap of $1 trillion for the past month. Occasional drops below this cap occurred, but prices corrected higher soon after. In the past week, cryptos as a whole fell severely after a couple of technical and fundamental mishaps. Bitcoin prices reached the psychological price of $20,000 and already managed to break it a couple of times in the past 24 hours.
When we see this specific price action, it usually signals an upcoming bear market. Cryptos can still recover in the following week, but the chances that a bear market happens in the upcoming week are much stronger with the current market dynamics. This is especially true while the sentiment in the crypto market is negative.
Bitcoin Price is at a Critical Area
Bitcoin crashed from the psychological price of $30,000 in an abrupt way and reached the next psychological price of $20,000. From there, BTC tried to recover and established a healthy uptrend. The entire crypto market followed and started to recover. However, the trend could not hold, and we witnessed a breach in the uptrend. This breach was the perfect signal for investors and traders to react to this upcoming falling prices.
After breaching the uptrend, Bitcoin reached the respective targets of $21,100 and the current $20,000 price marks. In previous price predictions, we did warn that any breach of this uptrend line would send prices lower towards those levels.
Bitcoin Price Prediction – Where will Bitcoin reach next?
The current technicals of Bitcoin are very risky and prices might continue bearish. If Bitcoin breaches the $20,000 price lower, the next target should be the $18,500. In fact, this price mark was the reversal point for Bitcoin, as prices reversed upwards back in mid-June 2022.
From there, we expect a slight consolidation in prices. If prices do not sustain higher than $20,000, we expect further drops towards the following as part of the continuation of the previous downtrend of 2022: