Bitcoin’s current price trajectory leaves much to be desired, with the biggest concern currently being when the digital asset will bottom out. There have been countless predictions since the decline began, and yet Bitcoin remains below $70,000. Still, that hasn’t stopped the barrage of fundraising calls and price predictions. One of them was shared by crypto analyst Crypto Patel, who used historical data and performance to track the likely drop in BTC price before reversing higher.
Bitcoin price could fall further to $50,000
In the analysis, Crypto Patel highlighted previous bear markets and the extent to which the Bitcoin price crashed each time before recovering. The first of these was the bear market of 2018, when the price of Bitcoin collapsed by 85% after hitting an all-time high of $19,000. Once the crash is over and the bottom is established, the price of Bitcoin would continue to see an increase of 350%.
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Next on the list was the 2019 crash which triggered a 70% crash in Bitcoin. This is a continuation of the downward trend that began in 2018, when profit-taking was the order of the day. However, as before, this hemorrhage would eventually end, and a 1,500% surge would follow that would see the price of Bitcoin reach new all-time highs. It ultimately peaked at $69,000 in 2021 before crashing again.
After the bull market of 2021, the year 2022 would mark the start of the next downtrend for the digital asset. With the collapse of crypto giants such as Celsius and crypto exchange FTX, the price of Bitcoin saw a 78% drop. But again, after bottoming out and increasing accumulation, the BTC price would eventually rise 750% to exceed $100,000 over the next few years, eventually reaching its most recent all-time high of $126,000.
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Using this trend, the crypto analyst points out that it is possible that the price of Bitcoin could drop further to $50,000, to complete a 50% price drop. However, despite the bearish predictions, Crypto Patel predicts that the BTC price will ultimately head towards $220,000, which would represent an increase of over 300% from $50,000.
However, taking historical performance fully into account, it shows that with each downtrend, the price of Bitcoin fell by an average of 70% each time. Thanks to this, it is likely that the price of the digital asset will fall below $40,000, eventually finding support around $37,000, should history repeat itself.
Featured image of Dall.E, chart by TradingView.com
