Analyst Explains Why Bitcoin Price Could Plummet to $2,020 in 2020

  • An analyst says bitcoin could crash to $2,000 to $3,000 range as miners sell-off.
  • In December 2018, bitcoin dropped from $6,000 to around $3,000 within weeks.
  • If miners capitulate, they are likely to return after the halving.

While many investors expect the dip to $6,600 of bitcoin last week to have been a bottom, one analyst believes the bitcoin price could fall to as low as $2,020 in 2020.

Speaking to CCN, the analyst said that as the slump in the cryptocurrency market continues, miners will likely look to take profits. Potential sell-offs of bitcoin by miners as seen in December 2018 could trigger a deeper pullback.

Where is bitcoin most likely to bottom?

In the past 48 hours, the bitcoin price has started to show signs of rejection at higher resistance levels following a recovery from mid-$6,000.

When the bitcoin price initially started to rebound from lower support levels, traders eyed a breakout to at least low-$8,000s. But, BTC struggled to maintain momentum above $7,500, moving towards retesting $7,000 again.

bitcoin price
The bitcoin price was rejected at $7,850, correcting to low $7,000s (source: coinmarketcap.com)

The analyst explained that the chart of bitcoin is showing a decline in the perception of value. A further move down from current levels could cause another downtrend in the near term.

Elaborating, he stated:

The chart is showing the perception of value is in decline. If it continues and revisits the levels it had previously in 2018 I expect another downtrend, bitcoin is known for behaving unpredictably and many see the upcoming halving as a given excuse for a price increase to find the balance after production is cut in half. I think it makes more sense…

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