The crypto space, nowadays, is showcasing extreme volatility with the prices varying with great intensity. It was just a couple of hours before, the Bitcoin price was consolidating strongly above $35,000. With the fresh plunge, the asset just broke down from the consolidation and is hovering around $33500 levels. No doubt the BTC price is trying to flip the bearish trend with a notable rebound, yet the possibilities continuing with the downtrend hovers.
Bitcoin after the 2017 peak price close to $20K, fell into deep correction which was followed by a prolonged consolidation of nearly 52weeks. Further in 2019 also the price peaked which also followed a 37-week correction later. Interestingly, both the peaks consolidated just above the 200MA or 300 EMA. And considering the most recent price rally in 2021, the BTC price is correcting for 37 weeks and importantly the EMA100 is being rejected as a strong support level.
Bitcoin Price To Plunge Below $25k ?
The BTC price in a recent update has rejected the EMA 100 levels and plunging down and may aim to hit the levels around 200-day MA. And the 200-day MA levels fall around the $20,000 price levels. It is to be noted that the price has not plunged beyond the 200-day MA levels and hence a significant bounce or a small term consolidation may ignite just above these levels. But until then the asset may continue to plunge heavily to reach the desired levels.
Therefore, the Bitcoin price may go down by another 40% to reach the 200-day MA levels in the weekly time frame to hit $20,000 shortly. However, it is also to be noted that the BTC price rally and surges are a part and parcel of the asset and Bitcoin is here to stay. Despite drastic plunges, the asset still cannot go to zero but it’s all about patience and time.
Source: https://coinpedia.org/bitcoin/heres-why-bitcoin-price-is-believed-to-slide-down-below-20k-in-the-next-3-to-4-days/