The Bitcoin (CRYPTO: BTC) price has enjoyed a bit of a rebound over the past few hours, putting the world’s original crypto up 4% since this time yesterday.
At the time of writing, one Bitcoin is worth US$31,249 (AU$44,872). That leaves the token down 8% over the past seven days and down 35% year to date.
Could the Bitcoin price retrace back to US$20,000?
You have to go back to November 2020 to find Bitcoin trading at US$20,000.
But according to crypto analysts Brian Cubellis and David Duong from Coinbase Institutional, the world’s leading digital token could fall back to those levels.
Commenting on the market sell-off following the meltdown of TerraUSD (CRYPTO: UST) and the token meant to keep UST pegged to the US dollar, Terra (CRYPTO: LUNA), they said (quoted by Bloomberg last week), “Multiple headwinds have given market players almost nowhere to hide in any asset class”.
Although the Bitcoin price edged above US$30,000 over the past hours, it still traded as low as US$29,573 overnight. And that, according to Cubellis and Duong, is cause for concern.
The analysts said that US$30,000 is “a major resistance”, as prices have continued to struggle to move and hold higher from there.
“If things were to deteriorate further the next line of support would come at around US$20,000, which was the all-time high in the previous 2017/2018 cycle,” they said.
The Bitcoin prices hit a low point of US$26,350 on Thursday, according to data from CoinMarketCap.
Crypto bulls keep an eye on the long game
Plenty of crypto investors will have lost money last week, with some US$270 billion estimated to have been wiped from the total crypto market valuation.
But crypto enthusiasts like Vasja Zupan, president of cryptocurrency exchange Matrix, are keeping their eye on the horizon and remain optimistic on the long-term outlook for the Bitcoin price.
According to Zupan (quoted by Bloomberg), “I remain long term bullish, especially on Bitcoin. But I do foresee high volatility for some time followed by a period of much lower volumes at lower prices before we can expect trending to new all-time highs.”