Bitcoin’s price has just experienced the worst high-timeframe correction in years, falling by 50% and instilling fear in the market.
Everyone is guessing where the now bearish cryptocurrency will fall, but based on previous cycles, it could get a lot worse before it gets better. Here’s why Bitcoin’s price could fall back to $14K before the bear phase ends.
The Bitcoin Yearly Candle Has Turned Bearish, But What About The Bull Market?
All of the arguments are the same: if that was the top in Bitcoin, this was the shortest and weakest bull market in history. The cryptocurrency would have fallen hundreds of thousands of dollars short of expectations.
That thought alone could generate extremely bearish sentiment – even more negative than what is currently prevailing in the market.
There are calls for a $20K BTC bottom, which would represent a 50% increase from where we are now. Another significant drop appears unlikely given the asset’s potential, but Bitcoin is extremely volatile as a “highly speculative” asset.
Why BTC Could Return to $14K Per Coin This Year
In technical analysis, the longest timeframes are always the most important. On a daily basis, Bitcoin was bullish, but the weekly MACD turning bearish signaled the top before the drop even began.
Monthly timeframes have become even more dominant, and a bearish evening star reversal pattern has now been confirmed on the monthly chart. As time passes, things may become even more bearish.
The short yearly candle and large wick to only the upside is unlike any other annual Bitcoin price candle before it. The candle is currently bearish, but the yearly chart could say more.
