The price recovered after falling from the USD 20,000 line where it had been for five consecutive days. Some analysts believe this could be the bottom of the Bitcoin bearish season.
After dropping below USD 17,000, the price of Bitcoin (BTC) recovered the support above USD 20,000. That proves that the strength of supply and demand amid the bearish market did not let it fall below that figure.
Some specialists predicted this is the bottom of the Bitcoin price to reverse its current bearish trend and begin to rise. However, others have warned for months that it will reach a lower low.
Many users wonder whether the bottom of Bitcoin was USD 17,000 or if it will continue to drop. Many agreed that the fall was not over after someone opened the discussion in the legendary bitcointalk.org forum.
Some weeks ago, the question was whether USD 30,000 would be the bottom, but the price dropped further. The fall to USD 17,000 caught many by surprise as they did not think it would test that value. Therefore, they believe the price could reach USD 15,000 in the short term.
They predict that the bottom of BTC has not yet arrived as the price has not broken the 200-week SMA. Since this is the first time this has happened in the history of Bitcoin, one analyst argued the long-term bullish sign has weakened.
A crypto market follower said that he feels bearish, like in 2014 when Mt. Gox collapsed after the price dropped below USD 20,000. He thinks it could even go down to USD 10,000 due to the stupid way many people have behaved.
The Bitcoin Drop from the USD 20,000 Support Raises Bearish Sentiment
The debate participants stated there is more bearish sentiment for Bitcoin in the short term after breaking psychological support at USD 20,000. The Fear and Greed index indicated that the market is at its worst level of fear, thus confirming that.
The drop to USD 17,000 meant that many investors left the market with a loss, as they sold thousands of bitcoins below USD 20,000. One user said this would lead to a year-long bearish market but hopes to be wrong.
Those purchasing Bitcoin when it was worth more and sold over the last few days have lost money. If they have not dumped their holdings, they are at an unrealized loss, waiting for a price recovery.
Only those buying Bitcoin before December 2020, like Minimal Trader, can make profits. He recently said that he has no losses since he has held BTC since 2017.
Another investor initially believed that the bottom of Bitcoin would be USD 30,000, but its price fell further. Then he thought it would be USD 20,000, but it also fell from that level. He pointed out that nobody knows the low that the price of the cryptocurrency will reach.
According to economist Peter Schiff, USD 20,000 looks like the new USD 30,000 support level of BTC. Considering that no one should feel excited about small rises, he said there is no sign of capitulation, usually forming a bearish market bottom.
A user stated that investors must be ready for any unexpected event in the Bitcoin market. He concluded that they must ensure they can afford to lose the money traded.
By Alexander Salazar