Bitcoin enthusiasts or not, you know that right now, the cryptocurrency is in a really weak state. Yes, we are seeing much positive development for BTC like the El Salvador adoption, move towards renewable energy, Elon’s neutral view and more. But none of this news is able to keep the price of BTC afloat. After being unable to cross the resistance at $40k-$42k, BTC has now been hovering between $30k-$35k, which is a bad sign. And the price movements with the parabolic indicators show an upcoming bear market for BTC. So, yes, Bitcoin might crash to $20k.
Is there an upcoming crash?
You are never 100% sure of the future, but we can predict what is going to happen. Considering that BTC has broken its bull run path, the chances of it resuming seems less. It had a pattern of making higher highs and lower lows which happened thrice, after which prices plummeted. The move in the monthly chart was more green and had a parabolic move upward. But now that has broken, and we might see even more correction.
Even in 2018, when the same happened, the prices crashed to $4000, which is over an 80% correction. Parabolic SAR that indicated the previous selloff in 2018 is indicating an upcoming one in 2021. We can easily trace back and test the previous ATH of $20,000, and you really hope that holds because the price can move back up from thereon. But if it doesn’t, then even $10,000 is on the cards.
What to do?
If you are thinking about getting in the market, I would say wait for now and have a close look at BTCs price action. Because right now, it is very risky to get in no matter how much you believe in BTC. On the other hand, if you have already entered at a higher price, then just HODL and keep funds ready for dollar-cost averaging at lower prices. This is the best bet for you as, in the long run, we will see BTC rise back again. Do note that this is not financial advice, and you should look for proper guidance and make an informed decision.
What are your thoughts on the indicators showing that Bitcoin might crash to $20k? And are you HODLING, planning to get in or have already sold? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.