Could Bitcoin go below $10,000?

BTC has dropped by over $50,000, i.e. over 74% (from $69,000 to below $18,000) over the last seven months.

Last Sunday, BTC recovered some losses, and its rate returned above $20,000 technical support. However, there are still several arguments (technical, cyclical and macroeconomic) for a further depreciation towards $12,000
or even further — to $8,000.

Some of the arguments that indicate a decline are as follows:

  • in 2011, after the so-called ‘first burst of the bubble’, BTC fell by almost 94%.
  • in 2013, when the second bubble burst, the decline amounted to over 83%.
  • in 2014, when the third bubble burst, Bitcoin fell by almost 93%.
  • in 2017, when the fourth bubble burst, the decline amounted to almost 84%.

So it turns out the current decline of 74% has not even matched the previous sell-offs observed over the years on the quotations of the oldest virtual currency.

If Bitcoin dropped to $12,000, the range of the depreciation observed since November would exceed 82%; And if it dropped to $8,000, the depreciation would be 88%, which would be in the range of sales from previous years.

However, it may be optimistic that after each of the abovementioned declines, Bitcoin returned to the growth path.

Looking at the Ethereum quotes, we notice that the price of this cryptocurrency has been dropping continuously for eleven weeks — ETH quotes fell by more than 75%. Counting from the peaks of November last year, the depreciation amounted to almost 82%.

Such a significant sale meant that Ethereum, which cost almost $4,900 just seven months ago, is now worth just over $1,000.

If the downward trend continues, the ETH rate could fall to around $800 or even further to $350. However, there are many indications that even if these declines continue, their dynamics should be lower.

Solana’s price has recently slipped below $37 technical support. Counting from the peaks of November last year, the depreciation amounted to over 90%.

Considering the low dynamics of the rebound observed for several days, we can assume that the price of this cryptocurrency will return to the downward path. It also means that we could expect to re-test the technical support of $23 soon. However, if this barrier is overcome, the sale could continue at $12.

Watch the full analysis here:

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