Bitcoin’s Journey to ‘Bearadise?’ Revisiting $20K as a Target Price for BTC

Bitcoin’s recent price movement has kept traders and analysts on edge, with the cryptocurrency hovering above $26,000 during the close of the week ending on August 20. Amidst this uncertainty, various projections of potential doomsday scenarios for Bitcoin’s price have emerged.

Market data from TradingView revealed a notable calmness in the BTC/USD market over the weekend, despite a downward slide of 11% over the past seven days. This apprehensive atmosphere has led market observers to remain cautious about the future trajectory of Bitcoin.

Keith Alan, co-founder of the monitoring resource Material Indicators, shared his cautious optimism, predicting that Bitcoin could experience a breakdown below $25,000, which might subsequently pave the way for a retest of support levels near the 2017 Bull Market Top, which was just below $20,000. Alan, however, didn’t expect this descent to occur in a straightforward manner. He outlined a potential scenario where Bitcoin retests the $25,000 support, possibly forming a double bottom and creating a strong foundation for a subsequent bullish move. In this case, he envisioned a realistic price range of $28,000 to $29,000.

Alan also pointed out the importance of the 100-week simple moving average (SMA), currently positioned at $31,368. A rebound that reaches this level would not only contribute to market recovery but also compound the impact of the losses witnessed in the current week.

Should the bearish momentum persist, Alan highlighted possible lower support levels, including $24,749 and $19,567, with the latter coincidentally situated just below a significant resistance/support flip zone associated with the 2017 Bull Market Top. Breaking below this critical level could potentially signal a pathway to what he termed “bearadise” – an opportunity for generational buying.

Echoing Alan’s sentiments, other market participants expressed consensus that if the $25,000 support fails, the $20,000 mark could once again become a focus point. A popular pseudonymous trader going by the name Skew projected that a break below $25,300 could lead to a target range of $24,000 to $23,000, with further downside potential towards $20,000 in an extreme scenario.

Despite the prevailing uncertainty, there were observations of notable on-chain volume pockets associated with whale buying at $23,200 and $21,000, as indicated by the analytics platform Whalemap. They also pointed to potential interest points at $19,200 and $16,600 should Bitcoin’s price continue to decline. It’s worth noting that prior support levels from whales at $28,250 and $26,950 were unable to stem the market’s downward movement.

As the week came to a close, traders remained watchful for potential intraday price action. While a bounce towards $28,500 seemed possible with increased buy-side pressure, the uncertain nature of cryptocurrency markets continued to underscore the need for vigilance and adaptable strategies.

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