Bitcoin suffered a notable death cross in recent days and has since seen a massive drop of nearly 40% in price as of press time. The death cross usually refers to the 200-day MA levels crossing the 50-day MA level in the daily chart and moving south. Often, this event is considered quite bearish that squeezes out a significant portion of the price.
In a series of tweets, a popular analyst believes that the death cross should soon bring the price of BTC down to $20,000.
Here the analyst summarizes the past death events and analyzes the time taken for the asset to recover. The events in 2013 took 135 days from their peak and the BTC price then fell by more than 70%. After reaching the highs, the bearish trend had already caused the price of BTC to drop by 70% and the death cross caused a further 70% drop in the price.
Also in 2017, 107 days after its peak, the death cross caused a 65% drop in the price of BTC, which had already fallen by 70% before the event. And in 2019, prices were cut by 53% before the death cross and 55% after the event. But 2021 showed a different scenario, where assets increased by more than 140% after Cross’s death.
Therefore, looking at the price action over the past history, analysts are predicting that the price of BTC could soon reach $22,700.
Collectively, looking at the above analysis, it can be assumed that the price of bitcoin has not yet reached the bottom. Hence, the analyst believes that the current price slash is a pre-death cross and hence more price drain is yet to come. Therefore, if history repeats, BTC price could drop by 65% and reach lows below $20,000.