Bitcoin could face one more crash before its price recovers.
A final ‘washout’ could send the price of the biggest cryptocurrency plummeting to $13,000 before it starts to go up, analysis by financial research firm Fundstrat found. Bitcoin is currently trading around $20,000.
“Most short-term technicals point to an above-average chance of a final ‘washout’-style decline before this bottom,” said Fundstrat strategist Mark Newton in a note on Tuesday.
“The initial warning should occur on a daily close under $20,491, while under $19,744 allows for a pullback to stest $17,592. Technically not much lies under $17,592 before $12,500 to $13,000, which I expect should be an excellent place for intermediate-term buyers to add to longs.”
Bitcoin is already down more than 70% from its all-time high of near $69,000 in November last year and has seen its price tumble this year amid the crypto winter gripping the industry. the prices of major tokens have crashed.