Bitcoin remains bullish for the long-term despite the recent bearish trends. Bitcoin is still an attractive investment choice, and there are high expectations for its growth over the next five-years. There have been many concerns about cryptocurrency’s recent decline, including that it has entered yet another bear market.
This school of thought is not for everyone. Bulls are not discouraged by current bearish conditions. However, there are still many scenarios that place bitcoin in an alternative bull trend. One scenario discussed here sees bitcoin growing an additional 300% prior to its expected fall below $20K.
Bitcoin Priced at $165K
After another drop below $40K, the argument for bitcoin reaching $20K is more convincing than ever. While there are still substantial support levels for bitcoin at $36k-$38k, with bears trying to bring down its price overtime, market expectations now favor bitcoin reaching below $30,000 soon.
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For a crypto analyst only identified as DeFeye, going by the 200 Week SMA trend historically, bitcoin has still not found the top. In the past, bitcoin lost approximately 85% of its all-time high after the bull market. A drop below the $20k mark would be contrary to previous trends. Bitcoin has not been below its 200-Week SMA in all bear markets. An 85% correction from $69k could break this.
Source: TradingView.com| Source: TradingView.com
Bitcoin would still need to grow much faster than the $69K record high if it wanted to follow previous trends. In this way, a 85% decline in bitcoin’s value during the bear market will not cause it to fall below the 200 week SMA.
The scenario suggests a bullish outlook on bitcoin in the long-term. If it keeps true to that, the current trends will not be a problem. This means bitcoin could break $100K in the medium- to long-term.
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Important to remember that bitcoin is not bound to follow the same trends as in the past. The 2021 rallies are a testament to the digital asset’s ability to form new trends as time goes on. While bitcoin is bullish about the fact it has not broken the 200-Week SMA, this could happen if it loses 85% or more of its ATH price.
BTC drop to $38K | Source: BTCUSD on TradingView.com
Featured image by UseTheBitcoin. Chart from TradingView.com