Bitcoin Plunging Towards $20k: Technical and Fundamental Reasons

The biggest crypto is not going to repeat by touching last year’s $28,800 bottom. A worse scenario is coming in two or three months but it may happen sooner. Right now BTC is trading under $30k by pulling all other coins to all-time low prices.

The sharp bear market started on May 11 when BTC broke $30k and eventually started trading below $27k for an hour. Normally it is moving sideways to maintain nearly $29k.

From a technical point of view, Bitcoin’s previous ATH was $20k back in December 2017. From the three major corrections, $20k was serving an absolute bottom if we take 200 weekly simple moving average. In 2015 BTC pulled back to that mark, then in 2018 and 2019 the coin again came back to that level. The next major correction will happen at exactly $22k.

If we rely on fundamental analysis the first factor is fed which has increased interest rates to slow down the inflation rate. Of course, people usually stop investing and buying after seeing big loan interests. Secondly, the Panamian president is going to refuse new legislation on Bitcoin as he suspects that it could be a money-laundering tool.