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How much longer will Bitcoin Price hover around the $20,000 mark?

Key Takeaways:

Here’s how Bitcoin price compares to its daily high point over the past few months:


$20,069 $20,550


BTC/USD | Source: Tradingview

As is evident from the chart above, Bitcoin price has been very slugging, bordering on the bearish side for quite some time now. Ever since the major crash that happened back in May 2022 – post the near $60 billion Terra LUNA implosion post the depegging of its algorithmic stablecoin, UST – crypto markets were sent into a tailspin and eroded a lot of wealth out of the market.

A bear market had already began in the beginning of the year which further triggered by this incident that caused a series of domino effect like the bankruptcy of the once popular crypto lender, Celsius and many others, coupled with the staggering high inflation numbers from the largest economy in the world, the United States, which is facing inflation of over 8.2% – the highest in over 40 years!

However, looking on the bright side, despite the fact that Bitcoin has collapsed to a near 18-month low, and down over 70% from its all-time-highs, BTC price is still up nearly 150% since the beginning of 2020. And as much investment class assets go, a 150% return in less than three years is nothing short of extraordinary, take a look.

BTC/USDT | Source: Tradingview

So from a macro, long term perspective, it is undeniable that Bitcoin price has corrected significantly however, is still at a reasonably good position. Someone who bought into the Covid-19 dip is probably sitting on 200% profits, despite the bear run.

What Bitcoin Investors should know? 

Well one thing that investors should know and understand is that it is the nature of any asset to go up and down in price. That is bound to happen. It isn’t any fixed income instrument like a fixed deposit or a government security that the investor will get the money at the end of the period, no matter what.

However, in the case of the crypto market, it is still in a very nascent stage, being only about 14 years old since the inception of Bitcoin back in 2008. Let’s put that into financial context – The overall crypto market cap is somewhere about a trillion dollars as of now. At its all-time-highs, it had touched nearly $3 trillion back in November 2022. Now, to put that into context, gold has a market capitalisation of about $11 trillion.

Even Apple, the most highly valued listed stock on the US stock market has a market capitalisation of about $2.3 trillion. The US stock market as a whole as a market capitalisation of $39.2 trillion as of writing.

Bitcoin, is the 14th most valuable asset in the world, across different asset classes, listed out simply by their market capitalisations, according to – standing at about $377 billion as of writing.

So it is pretty clear that the digital assets market is still a tiny little thing, compared to the behemoths out there and hence, due to the fact it is small, and the number of participants in the free market is still low, there tends to be more fluctuation in prices, making the asset more volatile.

Bitcoin Price Prediction for the Week!

Predicting Bitcoin price for the future is never an easy job. However, with technical analysis – one can make educated guesses on how price may perform based on historical price behaviour. So, for the week head, based on Bitcoin price history – we can expect some small recovery to happen over the weekend, thanks to the strong pullback that happened on 13 October. However, the psychological level of $20,000 would act as a level of critical resistance which would be difficult to break.

But if the $20,000 mark is breached, then we can see a short covering rally happening all the way till $22,000 which would again serve as a resistance level because that is the highest Bitcoin price has been able to rally to in the past 4 months, except for one occasion when Bitcoin rallied till $25,500 but soon corrected from those levels.

So, the maximum BTC price can rally till is about $22,000 – that too if the market doesn’t get hit by bad news and the optimism continues to trade higher.

Additional read: Bitcoin Price Prediction

Bitcoin News Today

As of recent news, Bitcoin had a wild day of trading over the past 24 hours. It began soon after the inflation numbers from the United States came out, which resulted in a near 5% crash over 3-4 hours after which, BTC price rebounded to gain over 9% from the lows to nearly touch $20,000 levels. It has since fallen from there but that wild swing caused over $110 million worth of Bitcoin future contract liquidations.

Read more about how Bitcoin bounced back to near $20,000 despite sky-high inflation numbers!

Prices as of 14 October, 2022.

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