The price of Bitcoin has just been rejected above $ 7,000, having recently rebounded from extreme lows below $ 4,000.
According to the first cryptocurrency, the very first cryptocurrency having never recovered from peaks, even a few weeks ago, the asset is threatened with yet another catastrophic collapse at just $ 1,800.
After a record collapse, has the bottom of cryptocurrency finally arrived?
The price of Bitcoin was more volatile than ever in 2020, dropping from $ 6,800 at the start of the year to more than $ 10,500, and then fell to less than $ 4,000 all in a short quarter of the year.
The record price drop prompted Bitcoin to revise prices never seen in a year earlier, and less than a month later, Bitcoin had already risen nearly 100%, almost doubling in value from the recent trough.
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But failing to maintain a bullish momentum above $ 7,000 could jeopardize the main cryptocurrency by market capitalization for another explosive collapse, possibly reducing the price of BTC to 2015 and 2016 prices.
It seems hard to believe that the price of Bitcoin could drop from $ 20,000 to less than $ 2,000, wiping out 90% of the asset’s valuation.
But that’s exactly what a prominent crypto analyst expects, according to a new chart shared via Twitter.
Analyst: if Bitcoin does not hold, a significant drop below $ 2,000 is possible
On a linear scale at the highest time, there is a major area of support that has never been tested in the past. This area is just above the previous historic record for 2014 and the breaking point in early 2017 that kicked off the historic bull market.
The analyst calls this zone the entry “zero or hero”, in reference to the fact that the drop in the price of Bitcoin as low as this would put the asset in danger of potentially reaching zero in the price. But just as possible, entry could be a lifetime financial opportunity, the equivalent of buying Bitcoin at $ 150 at the bottom of 2015, and then mounting the investment up to $ 20,000
my advantage was always to study higher time frames (1D and 1W), not a big trader with low tf, I have to admit. I feel like we could have a God level entry on $ BTC in box 0 or Hero.
How does this idea of graphics make you feel? pic.twitter.com/L68k6b43aD
– Walter Wyckoff (@walter_wyckoff) April 10, 2020
Such a trade would make anyone a hero and also make them filthy.
With a speculative asset like Bitcoin, there is little room between failure and the achievement of the enormous long-term potential of the asset as a digital replacement for failing fiat currencies.
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Most investors entering the crypto space know this and are greeted with the reminder to never invest more than they can afford to lose, because with Bitcoin, losing everything is a very real possibility.
But just as possible as the price of Bitcoin reaches zero, the asset could eventually reach prices of $ 100,000 or more per BTC, which gives people many reasons to take the risk if the cryptocurrency falls to such a level. .