- An analyst says bitcoin could crash to $2,000 to $3,000 range as miners sell-off.
- In December 2018, bitcoin dropped from $6,000 to around $3,000 within weeks.
- If miners capitulate, they are likely to return after the halving.
While many investors expect the dip to $6,600 of bitcoin last week to have been a bottom, one analyst believes the bitcoin price could fall to as low as $2,020 in 2020.
This looks bad…
The perception of value for #bitcoin exceeded the 2017 mania this year but price did not.
A change in perception like 2018 will likely drag the price down much further than the majority expect.
$2020 in 2020 doesn’t seem crazy to me. pic.twitter.com/8G8vQWxaQA
— EX (@icoexplorer) November 29, 2019
Speaking to CCN, the analyst said that as the slump in the cryptocurrency market continues, miners will likely look to take profits. Potential sell-offs of bitcoin by miners as seen in December 2018 could trigger a deeper pullback.
Where is bitcoin most likely to bottom?
In the past 48 hours, the bitcoin price has started to show signs of rejection at higher resistance levels following a recovery from mid-$6,000.
When the bitcoin price initially started to rebound from lower support levels, traders eyed a breakout to at least low-$8,000s. But, BTC struggled to maintain momentum above $7,500, moving towards retesting $7,000 again.
The analyst explained that the chart of bitcoin is showing a decline in the perception of value. A further move down from current levels could cause another downtrend in the near term.