Bitcoin (BTC) at $20,000 : A necessity before the bull run?

The volatility of cryptocurrencies leads us to accept that the bull run is far from being linear at all. Bitcoin, which started this year with impressive performance, allowing it to flirt with $31,000, has now dropped back to $27,000. Such conditions lead Rekt, a notorious crypto analyst, to predict a decline for the queen of cryptocurrencies.

Bitcoin back to $20,000?

The technical analysis of May 14 by our colleague highlighted the confirmation of a new bullish cycle despite a retest of the major support. This situation is similar to one we saw in 2017. It was said that 2023 would be the ideal year to accumulate BTC in our crypto wallets.

If #BTC is to experience a 2015-like retest of the Macro Downtrend…

Then price can still drop even deeper than what we've seen thus far$BTC #Crypto #Bitcoin pic.twitter.com/jlXVUvxUN0

— Rekt Capital (@rektcapital) May 12, 2023

“If #BTC is to experience a 2015-like retest of the Macro Downtrend… Then price can still drop even deeper than what we’ve seen thus far.”

This tweet was analyzed by The Daily Hodl on May 14. Their investigations allowed them to understand Rekt’s approach, who made a new bear run prediction for Bitcoin.

In fact, this analyst, followed by 345,100 subscribers, has suggested that Bitcoin’s current actions have similarities to its situation in 2015. At that time, the flagship cryptocurrency retested a diagonal resistance as support and had to drop by up to 38% in one month. Fortunately, this paved the way for a bull run.

What about the factors that could influence this drop?

For Rekt, the weekly close below $27,000 in week 19 raises concerns.

At the time of writing this article, BTC was trading at $26,891. Are we expecting a descent to $20,000 as predicted by Rekt?

However, we must note the existence of factors that could influence a potential price increase for Bitcoin. Among them is the recognition of its status as a store of value for the queen of cryptocurrencies. The US government’s desire to control debt by maintaining artificially low interest rates could also contribute to a Bitcoin bull run in 2023.

In addition to that, the current macroeconomic circumstances of the US economy, along with the approaching Bitcoin halving, create the best conditions to reach new heights.

It is worth noting that Benjamin Brannan, Head of Development Strategy at CryptoQuant, recently praised the resilience of Bitcoin. Nevertheless, it must not drop below the $16,000 mark.