(CTN News) – After briefly moving above $30,000 on Friday, Bitcoin has struggled to keep that level. The stock has already corrected 3% since and is currently trading at $29330 with a market cap of $557 billion.
Going forward, Bitcoin could be in for another major price correction, and if history is to be repeated, it could drop all the way to $15,000 and lower. The author of Rekt Capital Newsletter has outlined the Bitcoin death cross cycles of the past and the subsequent (BTC) corrections.
What is a death cross? A death cross is formed when the 50 EMA crosses UNDER the 200 EMA on a technical chart. Throughout the past decade, (BTC) has experienced a few cycles of death cross.
Must Read: Why Is (BTC)’s Price So Volatile?
According to the author, Bitcoin experienced an even steeper correction after the death of the cross in the past. In 2013, (BTC) corrected 70% after the death cross, in 2017, it corrected 65% after the death cross, and in 2019, it corrected 55% after the death cross.
Despite this, Bitcoin actually gained massively after the death cross in 2020 and 2021. In both instances, the death cross occurred at the bottom.
Bitcoin Death Cross for 2022.
Rekt Capital analyst believes BTC will follow the trend of 2013, 2017, and 2019, as Bitcoin has already corrected more than 36% since January 2022 instead of reversing the trend.
Additionally, Bitcoin has corrected 43% since its November 2021 peak before hitting the death cross. The price of BTC could reach $22,700 after a retracement of 43% after the death cross.
- Bitcoin could bottom at $18,000 if it decreases by 5% from its January 2022 death cross.
- (BTC) could bottom at $13,800 if it decreases by 65%.
- (BTC) would bottom at $11,500 if it decreases by 71%. In this case, the BTC price has fallen by more than 80% since its peak in November 2021.
According to Rekt Capital, “the interesting thing about the scenario of a -43% drop post-Death Cross is that it would result in a $22,000 loss”. Analysts believe that BTC investors would see great buying opportunities with high ROI.