Bitcoin (BTC), the leading cryptocurrency by market capitalization, has been trading in a sideways trend since its drop from the $28,000 level. As of the time of writing, BTC is currently valued at $26,800, having experienced significant declines across all time frames. The question on everyone\u2019s mind now is whether this downturn will continue or if Bitcoin is headed for another crash.\u00a0<\/p>\n
Cryptocurrency enthusiasts and traders closely monitor Bitcoin\u2019s performance after its recent price drop. According <\/a>to Miles Deutscher, an experienced cryptocurrency analyst, Bitcoin typically experiences a temporary rally after a decline, followed by a new low 5-8 weeks later.<\/p>\n Deutscher\u2019s analysis shows that in 2020, Bitcoin\u2019s price dropped by 56% within 59 days after rallying initially. Similarly, in 2021, Bitcoin\u2019s price dropped by 24% within 47 days, and in 2022, Bitcoin\u2019s price dropped by 42% within 40 days.<\/p>\n With this said, with BTC trading at $26,800, if it experiences a 20% drop, its price will likely fall to $21,440, while a 30% drop would bring it down to $18,760. A 40% drop would result in a price of $16,080, potentially taking Bitcoin back to the lowest point of the 2022 bear market.<\/p>\n 2023 Is Set To Be The Best Year For BTC Yet?<\/p>\n On the other hand, according <\/a>to cryptocurrency analyst Adrian Zdunczyk, historical data suggests that pre-election years are the best-performing years on record for Bitcoin, with a 98.8% chance of a bull run in 2023. Even though the worst six months of the year usually begin with May, Zdunczyk believes a bullish trend will likely emerge in the coming months.<\/p>\n Looking at the weekly chart, Zdunczyk notes that Bitcoin is currently experiencing a complete throwback to the 200-week trend, completing the mean reversion. While a strong correlation (0.42) exists between Bitcoin and the S&P 500, the critical support near $25,000 has been defended. However, if this support level breaks, traders could see prices fall into the lower $20,000 area.<\/p>\n Furthermore, Zdunczyk believes more downside is possible if Bitcoin stays below $30,000. However, after a successful retest of the 200-day baseline, the support level has been confirmed by multiple techniques. Meanwhile, there has been a deterioration in the 50-day average volatility, and the long-term trend has been temporarily exhausted.<\/p>\n Zdunczyk\u2019s analysis suggests a clear head and shoulders pattern has been completed, with a technical breakout target of $22,000. However, if the pattern fails to break, it could trigger a cascade rally beyond $35,000.\u00a0<\/p>\n As seen in the chart above, the local resistance is currently at $28,000, backed by the BirbicatorPRO (BPRO) analysis. The bears maintain control until there is a powerful close above this level. Bitcoin bulls must wait for a decisive breakout above $30,000 to ensure a more reliable upward trend.<\/p>\n Featured image from iStock, chart from TradingView.com\u00a0<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n Bitcoin (BTC), the leading cryptocurrency by market capitalization, has been trading in a sideways trend since its drop from the $28,000 level. As of the time of writing, BTC is currently valued at $26,800, having experienced significant declines across all time frames. The question on everyone\u2019s mind now is whether this downturn will continue or if Bitcoin is headed for another crash.\u00a0<\/p>\n Cryptocurrency enthusiasts and traders closely monitor Bitcoin\u2019s performance after its recent price drop. According <\/a>to Miles Deutscher, an experienced cryptocurrency analyst, Bitcoin typically experiences a temporary rally after a decline, followed by a new low 5-8 weeks later.<\/p>\n Deutscher\u2019s analysis shows that in 2020, Bitcoin\u2019s price dropped by 56% within 59 days after rallying initially. Similarly, in 2021, Bitcoin\u2019s price dropped by 24% within 47 days, and in 2022, Bitcoin\u2019s price dropped by 42% within 40 days.<\/p>\n With this said, with BTC trading at $26,800, if it experiences a 20% drop, its price will likely fall to $21,440, while a 30% drop would bring it down to $18,760. A 40% drop would result in a price of $16,080, potentially taking Bitcoin back to the lowest point of the 2022 bear market.<\/p>\n 2023 Is Set To Be The Best Year For BTC Yet?<\/p>\nCan Bitcoin Holders Expect Another 40% Drop In The Coming Weeks<\/h2>\n