Will Bitcoin Price Crash Similarly To 2019 And 2020?
2023年8月16日 - 8:00AM
NEWSBTC
Bitcoin price has mostly maintained the $29,000 level for the
better part of the week. This points to low activity and momentum
in the market, as well as a reluctance to engage in the digital
asset at this point. One reason for this reluctance is the
expectation that the Bitcoin price will see another crash before
the bull market resumes. However, this crypto analyst explains why
expectations may be dashed this time around. Bitcoin Price May Not
See A Repeat Of 2019-2020 Before the 2020-2021 bull market kicked
in, the Bitcoin price had seen a rollercoaster year. Mostly, the
bear market had ravaged the digital asset causing it to fall more
than 80% below its all-time high price at the time, and the crashes
would continue well into 2020. Related Reading: Base TVL Surges
900% In 2 Weeks, What’s Driving The Growth? Given the tendency of
the Bitcoin price to follow previous trends, investors are
understandably expecting a repeat of this trend. But pseudonymous
crypto analyst “Tony The Bull” took to X (formerly Twitter) to use
the ‘recency bias’ to explain why this may not happen. In the post,
the crypto analyst used an analogy of a town that had not had a
flood before, suddenly experiencing a flash storm rainstorm. Given
that it had not happened before, businesses were caught unaware
without flood insurance. However, going forward, the businesses
begin to expect another flood and as such, they get flood
insurance. The analyst explained that even though measures would be
put in place to decrease the chances of such as flood happening
again, people continued to operate with the knowledge of the impact
of the flood. “It is the brain’s way to going with the most easily
accessible information, which is the one that has most recently
impacted you in a significant way,” the analyst said. “This is
what’s called recency bias.” BTC movement over the last five years
| Source: BTCUSD on Tradingview.com This recency bias, when applied
to Bitcoin, shows investors are expecting a repeat of 2019-2020
because it is the most recent bear market. Hence, investors are
operating with the knowledge of the most recent impactful event.
“But much like the flood never happened before, we had a once in a
lifetime pandemic. The probability is rather low we’ll see the same
price action as 2019 and 2020,” Tony The Bull explains. BTC Price
Sticking To Previous Trends? The analyst’s position is backed up by
the fact that the Bitcoin price has continuously deviated from
historical trends during this cycle. One example is that while the
digital asset’s price did fall to around 70% below its $69,000
all-time high, it recovered to almost 50% below its ATH. Related
Reading: Regulatory Pressure Mounts On Worldcoin, Can WLD Price
Recover? However, a similar trend was recorded in 2019 when BTC’s
price recovered above $11,000 toward the middle of the year. But by
the end of the year, had lost about half of those gains. With the
rest of the gains being wiped out in early 2020. If BTC does end up
following the previously established trend though, then the digital
asset’s price could fall as low as $12,000 before the next bull run
begins. However, it is now a waiting game to see what ends up
happening. Follow Best Owie on Twitter for market insights,
updates, and the occasional funny tweet… Featured image from
iStock, chart from TradingView.com
Dash (COIN:DASHUSD)
過去 株価チャート
から 11 2024 まで 12 2024
Dash (COIN:DASHUSD)
過去 株価チャート
から 12 2023 まで 12 2024