Bitcoin (BTC) has experienced a surge in price, reaching six-week highs at the beginning of October. However, despite this positive momentum, some analysts still believe that BTC could return to $20,000.
Although Bitcoin is currently trading around $27,500 and has seen a 6% increase since last month, many market participants remain skeptical about its current price behavior. The hopes for Bitcoin to push through the resistance level of $30,000 have been dampened by the cautionary forecasts.
One such forecast comes from popular trader and market analyst CryptoBullet, who recently reiterated that the $20,000 price target for Bitcoin is still a possibility. In an analysis posted on X (formerly Twitter) on October 2, CryptoBullet pointed out that the latest price movement to $28,600 is forming the right-hand shoulder of a classic chart pattern known as the “head and shoulders.” If this pattern completes, a downside is expected to follow.
CryptoBullet stated, “Second half of October should be bearish imo,” indicating that they believe the price of BTC will experience a decline in the coming weeks. They based their forecast on an August roadmap that projected a short-term upside target of $28,000 before a reversal towards the $20,000 level.
Although some traders expressed skepticism about this scenario, including fellow popular trader Elizy, CryptoBullet is not alone in their concerns about the future of Bitcoin. Other analysts, such as Joao Wedson, the founder and CEO of crypto trading resource Dominando Cripto, have also warned about potential downside risks.
In a blog post published by CryptoQuant on September 28, Wedson compared Bitcoin’s performance between 2020 and 2022. He highlighted that a significant appreciation was followed by a major correction, which sent the cryptocurrency back to lower levels. Wedson hypothesized that a similar pattern could emerge, potentially revisiting sub-$20,000 levels. An accompanying chart offered a fractal that could indicate a repeat of this price action.
Wedson stated, “The target is $19,500 USD if this fractal holds over the next few weeks, which could result in a series of FUD (Fear, Uncertainty, and Doubt) and negative news in the cryptocurrency space. Furthermore, there is the possibility of a redistribution, where the price threatens significant highs, but institutional profit-taking forces the price down, creating an atmosphere of uncertainty in the market.”
In light of these warnings, traders and analysts are calling for the Bulls to step up and defend the support levels of Bitcoin in order to prevent a long-term retracement. It is clear that there is a sense of caution and uncertainty surrounding Bitcoin’s future price movement.
It is important to note that this article does not provide investment advice or recommendations. Investing in cryptocurrencies carries risks, and readers should conduct their own research before making any decisions.