Bitcoin remains quite bullish in the long term despite all the short-term bearish trends that have been recorded recently. It remains one of the most promising investment options in the space with growth speculated to skyrocket over the next five years. Throughout the entire recent downtrend, there have been widespread concerns that the cryptocurrency has officially entered another extended bear market.
However, not everyone subscribes to this school of thought. The current bearish climate does nothing to deter the bulls as there are still several scenarios that put Bitcoin in another uptrend. The one discussed in this article sees the digital asset grow at least another 300% before the expected decline to the $20K level.
Bitcoin at $165K
The case for Bitcoin heading into the $20K range is stronger now than ever after another drop below $40K. There is still significant support for the asset at the $36k-$38k level, but with the sell-off and bears working overtime to drive the price down, expectations have been skewed heavily in favor of seeing Bitcoin bottom out. below $30,000 in the short term.
Related Reading | Why Ethereum May Retest $2,500 Support Level
For a crypto analyst only identified as DeFeye, following the 200-week SMA trend historically, Bitcoin has yet to find the top. Previously, bitcoin has lost about 85% of its total all-time high value following the bull market. However, a drop to the $20k range would go against previous trends. Through all the bear markets, bitcoin has still not dipped below the 200-week SMA, which would be broken by an 85% correction from $69k.
BTC has never broken below the 200-week SMA | Source: TradingView.com
So if the digital asset were to maintain previous trends, Bitcoin would need to rise much higher than its all-time high of $69K. This way, an 85% drop in value in the following bear market would not see it drop below the 200-week SMA.
This scenario paints a bullish outlook for BTC in the long term as if it stays true to this then the current trends are just a minor hurdle. It also means that Bitcoin would be expected to break the $100K point in the medium to long term.
Related Reading | Yearn Finance (YFI) fell 13% after the departure of Andre Conje
It is also important to note that although Bitcoin has historically followed previous trends, there is nothing to indicate that it cannot break out of these trends. The 2021 rallies are a testament to the digital asset’s ability to form new trends as time goes on. So while he is bullish on the fact that it has never broken the 200-week SMA, it could very well happen if Bitcoin loses 85% of its ATH value.
BTC falls to $38K | Source: BTCUSD on TradingView.com UseTheBitcoin Featured Image, Chart from TradingView.com
This post The bullish scenario that puts Bitcoin at $165K before $22K
was published first on https://www.newsbtc.com/analysis/btc/the-bullish-scenario-that-puts-bitcoin-at-165k-before-22k/
