Over the last few weeks, we have seen an increased bearish market for Bitcoin (BTC), which has fallen below $30,000 for the first time in months. The largest virtual currency has reached extremely high prices in 2021. The record is now close to $64,000 and investors were waiting for even higher prices.
The main question is now understanding whether Bitcoin could fall below $20,000 and continue with the current bear market. Things have turned bearish compared to a few months ago, but some investors are still bullish about the future of Bitcoin.
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Bitcoin could definitely fall below $20,000 in the future. Things have been very volatile for the cryptocurrency market in recent years. However, there are some things we should take into consideration before we understand how the market could behave in the future.
The first thing we need to know is that when Bitcoin makes a top, it usually falls between 70% and 90% from it. The correction can last just some months or even years. But the price generally retraces between 70% and 90%.
If we consider that the top for Bitcoin was at $64,000, then we could expect a retracement to $19,000 or even $6,000. How likely is that to happen? Very unlikely, but not impossible. This should mark a clear bottom for Bitcoin that could recover afterwards.
How long could it take to reach these levels? It can take just a few months or even years. But at the moment, the market is far from these levels. Thus, it might be possible for Bitcoin to avoid reaching these levels, at least in the near future.
There are different reasons related to Bitcoin’s price decrease. It is worth mentioning that when Bitcoin reached an all-time high this year, Elon Musk, the CEO of Tesla, started discussing the environmental implications of Bitcoin and its mining activities.
Due to this reason, the market started falling. Moreover, Tesla decided to suspend the sale of Tesla cars for Bitcoin. The Bitcoin community started after it a campaign to inform how Bitcoin miners are working in order to bring better technologies to the mining industry and how they are using renewable energies to mine BTC.
Another reason that has pushed Bitcoin down was related to miners’ situation in China. The Chinese government has decided to ban mining activities in some provinces. This has created an exodus of Bitcoin miners from China to other countries.
Some analysts suggested that Bitcoin miners in China were selling their coins in order to reallocate their mining farms abroad. This has also affected the market and increased the selling pressure on Bitcoin. However, we see that there has been a lot of FUD in the market once Bitcoin surpassed $64,000.
This is a good question that we must answer in order to understand what can happen to Bitcoin. The answer we have is that Bitcoin would eventually recover from the current bearish moment. How long it would take for Bitcoin to recover, is another question to which we do not have a clear answer.
In general, the period between bull markets has been close to 4 years. Whether this will happen again before or later, it is something we should wait and see. We are not able to predict the future, but we do know that there are many characteristics of Bitcoin that make it one of the most useful cryptocurrencies in the world.
Individuals that are searching for a store of value or for a currency that is independent of governments and countries could easily rely on Bitcoin. This demand can clearly push its price higher in the coming years.
Bitcoin’s highest price ever was $64,800 in some exchanges on April 14th, 2021. Although the market started a bear trend after this price, some experts believe that the virtual currency could continue growing in the coming years. It is just a matter of time to see Bitcoin surpassing $64,800 and reaching new all-time highs in the future.
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