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Bitcoin Price Could Face a Further 22% Drop, Revisiting 2017 High

John KumiBy 0Edited by John Kiguru 21. August 20233 Mins Read
  • Bitcoin has been predicted to trade as low as $20k, a 22 percent fall from the current price.
  • The current market pullbacks have been linked to the reports of SpaceX selling its BTC holdings, and investors losing interest in the market.

Bitcoin (BTC) has fallen by 11 percent in its weekly chart to trade at $26,080.08 as bears dominate the market. This is in the wake of a recent report that SpaceX has sold its Bitcoin holdings after recording a write-down value of $373 million for the past two years. According to analysts, this coupled with China’s Evergrande bankruptcy report has potentially had a toll on Bitcoin, forcing investors to liquidate their positions. 

It can be recalled that Billionaire Elon Musk announced in 2021 that SpaceX had entered into the world of crypto as it purchased an undisclosed amount of Bitcoin. Tesla Inc which also purchased $1.5 billion worth of Bitcoin reportedly sold 75 percent of its holdings last year. Despite current market struggles, analysts have predicted a downward trend for the Bitcoin price. 

A crypto analyst identified as Ali has observed that whenever BTC trades below the 200-day SMA (Simple Moving Average), the asset falls to the realized price, and has repeatedly done that for the past 10 years. According to him, the realized price is currently around $20,350, a 22 percent fall from the current price. 

CryptoQuant Report on Bitcoin Price

Similar to this prediction, CryptoQuant has observed that the realized price of short-term Bitcoin holders could be a huge risk to the digital asset. The realized price of BTC currently held from one to six months was compared to the one held for a year in 2019. Per the report, investors are not heavily hit as compared to 2019 where losses were around 41 percent to 45 percent. With the current cycle, the loss is around 4 percent to 9.2 percent. 

It is necessary that even in the face of a further drop in the price of Bitcoin, this realized value should increase. An increase in realized value will indicate a double interest in holding Bitcoins.

Some of the reasons for the current fall and the potential pullback have been linked to a general lack of interest in the market. On Monday, Glassnode reported an extreme level of exhaustion and apathy in the BTC market, three days before the market declined. 

On a shorter timeframe, it could be argued to be a slightly top-heavy market, with many price-sensitive investors at risk of falling into an unrealized loss.

On Friday, Coinshares also explained the connection between the lower trading volumes on various exchanges. 

In recent months, volatility has decreased, reaching levels comparable to the all-time lows observed at the start of the year. Historically, such levels have often marked turning points for significant price swings, either upward or downward.

The sharp decline in Bitcoin price on Thursday, according to CoinShares, was a result of a large number of long positions on the Bitcoin futures market across different exchanges. In just 24 hours, traders liquidated about $1 billion. 

As of press time, Bitcoin had a 24-hour trading volume of $10,939,638,391 and a safety score of 51/100. Ethereum (ETH) is also down to $1,671.19 after falling by 9 percent in the last seven days. 

 

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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@crypto-news-flash.com Phone: +49 160 92211628

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