It is really happening now: bitcoin is falling to the zone of the all time high from 2017. The price has not been here since the end of 2020. This was the beginning of the bull market, in which bitcoin moved to $ 69,000. What will bitcoin do at this crucial point?
Find support
Most importantly, bitcoin will find support here. This is a logical place for that, as the price hadn’t come back before when this zone broke in December 2020. This we described also in different scenarios in May.
As we can see in the chart above, the support around $30,000 was not enough to keep bitcoin strong. Due to the significant drop of the past two weeks, the price is just above the zone around USD 20,000. If bitcoin remains above, the coin will continue to move between these two purple zones for the foreseeable future.
An alternative is scary; Bitcoin is slipping through the all-time high of 2017. At this point, that seems unlikely, as previous highs have often served as support. When bitcoin moves through a previous high, it often bounces back to this price to move further.
To be able to say more about what bitcoin is going to do at this point, let’s zoom in to the 4-hour chart. The zones are the same as the first graph. The candles are just different: they are here for 4 hours each, instead of 1 week.
So far, we don’t see a strong sign that bitcoin will find support here, and that’s not surprising. The all-time high of 2017 was $19,798. This is still $700 away from the current price. It is therefore likely that this price will be reached before bitcoin will find support.
From here it becomes ‘ride or die’ for bitcoin. When the price finds a support, the price can move again between 20,000 and 30,000 for a long time. But if that doesn’t happen, we could get into a big crypto rut. The hype has already gone and that way many investors – who have never made such dips before – will start to doubt.
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