The entire crypto market went back to being red after a few weeks of consolidation. Bitcoin prices specifically failed to breach the resistance price of $25,000 and dropped back towards the 20K price mark. However, in the past 24 hours, Bitcoin prices breached this strong support price of 20K and slipped into the 19K zone. Was this a fakeout? Or will Bitcoin crash to 10K? In this Bitcoin price prediction, we analyze why is Bitcoin down and the potential next targets.
Why is Bitcoin Crashing?
There are 2 main reasons for why Bitcoin is crashing and bringing the entire crypto market with it lower. The first one is a technical reason. Most cryptocurrencies including Bitcoin reached a resistance price area and failed to break it. For BTC, this price was around $25,000.
In figure 1 below, we can see our previous Bitcoin prediction which stated that Bitcoin can drop to 20K after also breaching the uptrend line.
The second reason however is a fundamental one, as one of the key big player in the crypto space announced their bankruptcy. We are talking about non-other than Silvergate crypto. This type of news usually affects the entire crypto market, similar to what happened when FTX crashed
.
Bitcoin Price Prediction: Will Bitcoin reach 10K?
Now that Bitcoin slipped below the 20K price mark, we need to pay close attention to what happens next. There are 2 potential case scenarios at hand:
1- Fakeout: Bitcoin prices might have simply faked-out below the 20K, only to go back above this price area and continue higher.
2- Breakout: Bitcoin prices go back below 19K and continue to dip lower. If this happens, Bitcoin will have the following lower targets: 19K, 18K, 15K and 12K.
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