Bitcoin and the entire crypto market are currently on an uptrend, which is a cause for celebration for investors across the space. However, not everyone expects this upward trend to continue. One crypto analyst has argued why Bitcoin and the crypto market in general could be headed for an epic crash.
Why Bitcoin and Crypto Will Crash
A crypto analyst named Shelby on the TradingView platform has a analysis why the price rally will end in a massive crash. The analysis that started on October 24, 2023 starts with expectations of a price increase for Ethereum to the $3,200 level before the price falls to $200-$600.
A follow-up commentary shows that ETH is expected to actually reach $2,100. Or in special circumstances, reach $3,200, while Bitcoin rises to $36,000 if the ETHBTC pair reaches 0.088 BTC. The second part of this has since played out in that the Bitcoin price has now surpassed $36,000, but Ethereum is lagging behind $2,000.
However, this bullishness ends in 2023 as the analyst expects a crash to occur sometime between the first quarter and the second quarter of 2024. They compare this crash to the crash of early 2020, which sent crypto rallies to new lows before the bull market began.
The price targets for this predicted crash would see Bitcoin and Ethereum fall by more than 50% from their current levels. For Bitcoin, the analyst estimates it at less than $15,000 for the first half of 2024 and Ethereum at less than $500.
It’s not all gloom though, as the crypto analyst expects both assets to recover quite well heading into 2025. “Given my expectation is that BTC will cross the ~70,000 mark in 2025, and ETH may well exceed $5 – 10,000. So buying altcoins during the impending crash will be very lucrative.”
BTC rejected at $37,000 | Source: BTCUSD on Tradingview.com
What happened in 2020?
The trend pattern for Bitcoin in 2019 is eerily similar to that of 2023 so far. Just like in November 2023, the Bitcoin price had recovered in November 2019, taking the rest of the crypto market with it. This price increase would continue into early 2020, but that streak would be broken not long after.
Historical data shows that the price of BTC peaked just above $10,000 in February 2020, before the crash began. By March, the asset’s price had fallen nearly 50% to $5,400 before the halving took place. These types of crashes are what the analyst points out.
If this repeats, the current Bitcoin rally could continue until early 2024, likely reaching a peak of $40,000. But the market’s bottom could be marked as early as November 2022, as a 50% decline would not bring the BTC price below $15,000.
Featured image of Kinesis Money, chart from Tradingview.com