Bitcoin prices have already faced a tough time staying over the $30K level after a short proceed on Friday. It remedied 3% and is presently trading at $29,330 for a market capitalization of $557B. but even as this happens, Bitcoin could face another drastic correction in costs taking it down by a massive 43% to the $22K mark.
Analysts have warned of a sustained bear market and said that Bitcoin could dive closer to $20K than previously predicted, confirming historical trends.
There has been intense debate over the ‘death-cross construction on the charts. This is linked to the decreasing 50 MA, (the moving average), and crossing to under the 220 MA mark.
Frequently, during earlier periods, such events have led to a drastic downward price correction, and this could turn into what has been termed the generation bottom.
Analysts Believe Bitcoin In Grip Of Bear Market
Rekt Capital summarized that frequently the pits of a Bitcoin correction in the pre-Death Cross phase are identical to the retrace depth after the Death Cross.
The rules were broken both in March two years back and then again in May last year, on the post-death cross losses. But in both events, the Death Cross indicated the bottom.
The previous historical trend appeared to have returned in January this year. A Death Cross event was noticed even as Bitcoin had already shown a decline of 43% against its November high at $69,000.
A further decline of 43% puts the BTC/USD pair in the $22,700 range. A remarkable thing about the situation (-43% post the Death Cross crash) is that there could be a $22K Bitcoin.
Analysts said it was time to concede that Bitcoin remains in the grip of a sustained bear market. And it has been such a situation ever since prices moved further from the one-year moving average, something that was pointed out as a crucial risk by analysts as prices were rejected at that level.