Bitcoin’s current price trajectory has left a lot to be desired, with the most concern currently being for when the digital asset will hit a bottom. There have been countless predictions since the decline began, and yet, Bitcoin remains below $70,000. Nevertheless, it has not stopped the barrage of bottom calls and price predictions. One of these was shared by crypto analyst Crypto Patel, who took to using historical data and performance to track how low the BTC price will probably drop before reversing upward.
Bitcoin Price Could Still Crash To $50,000
In the analysis , Crypto Patel pointed to previous bear markets and how far the Bitcoin price had crashed each time before recovering. The first of these was the 2018 bear market, when the Bitcoin price had crashed 85% after hitting an all-time high of $19,000. Once the crash was over and the bottom was established, though, the Bitcoin price would go on to record a 350% rally.
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Next on the list was the 2019 crash that had triggered a 70% Bitcoin crash. This was a continuation of the bear market trend that had begun back in 2018, as profit-taking was the order of the day. However, just like before, this bleed would eventually end, and what followed was a 1,500% rally that would see the Bitcoin price reach new all-time highs. It eventually peaked at $69,000 in 2021 before crashing again.
Following the 2021 bull market, the year 2022 would kickstart the next bear run for the digital asset. With the collapse of crypto giants such as Celsius and the FTX crypto exchange, the Bitcoin price witnessed a 78% crash. But once again, after hitting a bottom and accumulation ramped up, the BTC price would eventually rise 750% to cross $100,000 in the next few years, and eventually hit its most recent all-time high of $126,000.
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Using this trend, the crypto analyst outlines that it is possible that the Bitcoin price will drop further to $50,000, to complete a 50% price drop. However, despite the bearish prediction, Crypto Patel predicts that the BTC price is eventually headed for $220,000, which would be an over 300% increase from $50,000.
Fully taking the historical performance into account, though, it shows that with each bear trend, the Bitcoin price has fallen an average of 70% each time. Using this, it is likely that the digital asset’s price will crash below $40,000, eventually finding support around $37,000, if history were to repeat itself.
Featured image from Dall.E, chart from TradingView.com