- At the time of writing this article, bitcoin is trading above $19,100.
- So far this week, the drop exceeds 27%.
What market analysts and investors feared has finally happened: the price of bitcoin broke the level of 20,000 dollars downwards this Saturday, June 18, which also implies the breaking of a historical pattern for the cryptocurrency in the market.
During the early hours of this Saturday, the cryptocurrency even fell to $18,700 for the first time since 2020. And although it had a slight rebound, at the time of writing it is traded on exchanges at about $19,165 per unit.
So far this day, the drop in bitcoin is more than 6% compared to the opening of the daily candle this Saturday. But this week, the cryptocurrency has dropped more than 27% of its market value.
The $20,000 mark was not just an important psychological mark in the market. It also had great historical value for bitcoin. As we have reviewed in recent days in ForexDominion, that level was key because it was the historical limit set in the market cycle prior to the current one, in the 2017 bull run.
Until now, once the all-time high of a previous market cycle had been broken, that mark had never been broken lower again. Bitcoin is, then, in unknown territory with this new drop in its price.
Furthermore, the cryptocurrency remains below the 200-week moving average, an average that has historically served as very strong support. Although that average has been broken before, the precedents are few, as we have reported before.
Possible rebound and bullish expectations
It is true that the outlook looks bleak for bitcoin investors, who are currently fearful. Also, various analysts already foresaw the fall towards 19,000 dollars and assured us that once this movement was completed, the scenario would worsen.
However, bitcoin has historically made notable rallies after briefly dipping below the 200-week moving average. The current difference is in the breaking of the market cycle which has never happened before.
Still, there are notable bullish predictions. Above all, if we take into account that Fidelity Investments and JP Morgan have recently evaluated that bitcoin is below its ideal value or what it should have with the current situation of the network.
According to a report on cryptocurrency adoption in the world that we recently reviewed, the growth of bitcoin is just beginning. According to metrics from that report, in the next decade, the cryptocurrency could be reaching $500,000. At the moment, it is a long way from that, with more than 70% below its cap of $69,000 per coin.