Bitcoin’s Potential Retreat to $20,000: An Expert’s View

The price of Bitcoin is expected to drop to a range of $30,000-$36,000 before potentially reaching a local bottom around $20,000, according to Placeholder partner Chris Burniske.

Continue to think we go lower to consolidate than most people expect due to variables that are too many to explain in detail via tweet (eg, crypto-market specific, macro, adoption, new product development). As for the denial out there… takes time for partiers to sober up, saw…

— Chris Burniske (@cburniske) January 25, 2024

“Continue to think we go lower to consolidate than most people expect due to variables that are too many (e.g., crypto-market specific, macro, adoption, new product development),” the expert warned.

Testing levels around $20,000 will be a “factual step” towards subsequently reaching previous highs, he believes.

“The path there will be volatile — expect setbacks. And it will take months. As always, your best friend is patience,” Burniske emphasized.

In his view, the decline of other assets will be deeper than that of Bitcoin.

Burniske noted that he is referring to local lows/highs, not the entire current market cycle of the leading cryptocurrency. He considers the long-term trend to be positive.

Earlier, former BitMEX CEO Arthur Hayes also predicted that Bitcoin prices would fall below $35,000 due to global macroeconomic and political upheavals.

Technical analyst Ali indicated that breaking the $38,130 level would trigger a wave of panic selling by short-term holders trying to minimize losses.

On January 11, amid the launch of spot Bitcoin ETFs in the US, the price of the leading cryptocurrency surpassed $48,000. However, it subsequently declined and fell below $40,000 on January 23. By the end of the month, the price again exceeded $42,000. At the time of writing, digital gold is holding above this level (CoinGecko).

Very likely chance #Bitcoin has finished its correction since the ETF launch.

This means the rotation towards altcoins will likely start in the next 1-2 weeks when ecosystems are thriving in returns before Bitcoin breaks the highs again.

Good morning!

— Michaël van de Poppe (@CryptoMichNL) January 29, 2024

“Very likely chance that Bitcoin has finished its correction since the ETF launch. This means the rotation towards altcoins will likely start in the next 1-2 weeks when ecosystems are thriving in returns before the leading cryptocurrency breaks the highs again,” wrote MN Trading founder Michaël van de Poppe.

Industry veteran and Blockstream CEO Adam Back suggested that Bitcoin’s price could exceed $100,000 even before the anticipated halving in April.