Bitcoin price visited a year-old low some moments before and struggled hard to maintain the levels above $24,000. The star crypto after nullifying the gains incurred through the year 2021, could be heading lower to test its 2017 ATH below $20,000 very soon. Therefore, with fewer chances of a strong rebound, the beginning of a new bearish cycle is suspected to have ignited the previous weekend.
Therefore, amid the bearish descending trend, how low can the Bitcoin(BTC) price may plunge?
Considering the previous liquidations and volume, Bitcoin is yet to reach the bottom of the current cycle. The volume is yet to record its highest levels, it did during the May 2021 price when the asset plunged heavily by more than 50% in just a couple of days. The asset had recorded the highest volume in its history then.
So, when can the highest volume in history be recorded?
According to a chart shared by a popular analyst, the volume is expected to spike higher when the BTC price will reach the 2017 ATH, just below $20,000.
Bitcoin is in a local downtrend since the beginning of 2022 and ever since the inflation rates are out, the bears have pushed the price lower and lower. Currently, the price is trading close to $24,000, while the crucial zone to be held is between $22,600 and $24,200. If the price breaks down from these levels, then inverse price action is primed to drag the price lower between $17,800 to $19,800.
As per the analyst, the volume has not spiked yet amid the fresh price slash and hence the bottoms could be still within range. In fact, the volume is less than that of the recent May 2022 crash which was fueled by the LUNA-UST crisis. And hence it may be anticipated that the Bitcoin lows could be fast approaching, while the possibilities of a rebound remain distinct.
Was this writing helpful?
Source: https://coinpedia.org/bitcoin/has-bitcoin-reached-its-bottoms-or-more-dreadful-price-slash-is-incoming/