Bitcoin is still quite bullish in the long run, despite all the bearish short-term trends that have been recorded recently. It’s still one of the most promising investment options in the space, and growth is speculated to skyrocket over the next five years. During the recent downtrend, there were widespread concerns that the cryptocurrency has officially entered another sprawling bear market.
However, not everyone subscribes to this mindset. The current bearish climate does nothing to deter bulls as there are still several scenarios that place bitcoin in a different bull trend. The one discussed in this article sees the digital asset grow at least 300% more before its projected drop to the $20K level.
Bitcoin for $165K
The argument that bitcoin is headed towards the $20K range is now stronger than ever after another dip below $40K. There is still significant support for the asset at the $36k-$38k level, but with the sell-off and bears working overtime to lower the price, expectations have been largely skewed in favor of bitcoin falling below USD in the near term. 30,000 will come.
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For a crypto analyst identified only as DeFeye, historically following the 200-week SMA trend, bitcoin has still not found the top. Previously, bitcoin lost about 85% of its total all-time high after the bull market. However, a drop towards the $20k range would run counter to previous trends. In all bear markets, bitcoin has still not fallen below the 200-week SMA, which would break an 85% correction from $69k.
BTC Has Never Dropped Below 200 Weeks SMA | Source: TradingView.com
So if the digital asset were to stick to previous trends, bitcoin should rise much higher than its all-time high of $69K. In this way, an 85% drop in value in the next bear market would not fall below the 200-week SMA.
This scenario paints a bullish outlook for BTC in the long run as if it were true to this, then current trends are just a minor roadblock. It also means that bitcoin is expected to break the $100K point in the medium to long term.
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It is also important to note that although bitcoin has followed previous trends in the past, there is no indication that it cannot break these trends. The 2021 rallies are a testament to the digital assets’ ability to shape new trends over time. So while optimistic that it never broke the 200 Week SMA, it could very well happen if bitcoin loses 85% of its ATH value.
BTC drops to $38K | Source: BTCUSD on TradingView.com
Featured image of UseTheBitcoin, chart from TradingView.com