Bitcoin Could Fall Below $20,000 Before Bull Rally Resumes, Analysts

The past two weeks have been incredible for the price of Bitcoin. The digital asset has successfully managed to make its way out of a disappointing bear trend, hitting two-month highs in the process. However, with the recent pullback, there may be a bit more pain for Bitcoin investors before the upward rally continues.

Analyst Justin Bennett says Bitcoin below $20,000 is possible.

In one of its new issues Crypto Trading Newsletter, analyst Justin Bennett revealed some of the market’s bearish tendencies. He first points to the fact that the market has benefited considerably, with its value up 28% in the last 18 days alone. But as expected after such a rally, a market correction has pulled the price of the digital asset back.

While there is speculation that this pullback will only be temporary, Bennett points out that it could go a long way. Now, the analyst doesn’t shy away from the bullish trend that Bitcoin is currently in but envisions a scenario where the cryptocurrency could fall below $20,000 before the rally resumes.

Bitcoin below $20,000

BTC could see sub-$20,000 before rally resumes | Source: Cryptocademy

As of this writing BTC is already back in the $20,000 region, lending credence to Bennett’s analysis. However, with key support for the digital asset now remaining at $20,000, the bears could push the price as close to that support as possible before taking over once again.

“I like Bitcoin towards $25,000 and possibly $29,000, but not without a return to the $20,000 area first,” Bennett said in his newsletter.

Factors driving this pullback

In the same newsletter, Bennett pointed to the PPI data release that underwhelmed the market. In the end, the much-anticipated release fell short of expectations, leading to market fatigue. As a result, Bitcoin fell below $21,000.

Also pointing to the US Dollar Index (DXY), the analyst explained that the index’s move on the back of the PPI data release would have been bullish for assets like BTC. “But I think the markets got ahead of themselves, so a lot of the price of that bullishness was already fixed,” Bennett added.

Bitcoin price chart from TradingView.com

BTC corrects downward following rally | Source: BTCUSD on TradingView.com

Since this pullback has pushed the price of BTC dangerously close to its 5-day moving average, it wouldn’t be surprising if the cryptocurrency loses another couple of hundred dollars in value in the coming days. Should.

However, the bullish trend is expected to continue soon as trading volume remains high, and investor sentiment reaches a 9-month high, which is very close to the crypto fear and greed index.

BTC is trading at $20,779 at the time of this writing. Its price is 2.18% lower in the last 24 hours, but 14.54% higher in the 7-day period.

Following The best Ovie on Twitter For market insights, updates, and the occasional witty tweet… Featured image from CryptoSlate, chart from TradingView.com



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