US Bank Foresees Major Bitcoin Price Drop To $20,000

Scott Matherson

1 year ago

3 mins read

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The crypto space is currently facing bearish signals as the price of Bitcoin has failed to maintain crucial levels at $42,000, slipping to $39,909 at the time of writing. United States financial service provider Deutsche Bank, foresees even more declines in the upcoming months, projecting the value of Bitcoin to dip below $20,000.

Deutsche Bank Predicts Massive Bitcoin Decline

Reports from Bloomberg, referencing a recent survey made from January 15 to January 19, 2024, by Deutsche Bank reveals investor’s sentiments regarding the volatility and future trajectory of BTC’s price. The survey, which appraised over 2000 people in the United States, United Kingdom, and the Eurozone, revealed that a third of the surveyed people expect to see a significant drop in the price of Bitcoin to values below $20,000.

The substantial decline is anticipated to occur around January 2025. Although the majority of people foresee a significant plunge in the value of Bitcoin, the survey also indicates that 15% of people believe that Bitcoin’s price will consolidate between $40,000 and $75,000 by the end of 2024. Additionally, about 10% of the respondents think that Bitcoin could fall between $20,000 and $40,000.

It’s important to note that the price of BTC has been experiencing major declines over the past few weeks. At the time of writing, the cryptocurrency is trading below $40,000 after surging over $45,500 earlier in January this year.

This unprecedented decline is raising concerns in the crypto space as the price of Bitcoin is moving contrary to what most crypto investors and enthusiasts previously projected. Various crypto analysts predicted that the price of Bitcoin could surge to $50,000 following the approval of Spot Bitcoin ETFs. However, Bitcoin gave up most of its post-ETF approval gains and had been experiencing severe declines since.

BTC bulls vie for control from bears | Source: BTCUSD on Tradingview.com

Analyst Reveals Key Factors That Could Break BTC Price Descent

Popular crypto analyst, Ali Martinez has taken to X (formerly Twitter) to disclose key technical price elements that could halt further declines in the price of Bitcoin. Martinez shared a chart published on TradingView depicting intricate price movements and patterns for Bitcoin.

The crypto analyst revealed that a weekly closing price below $38,000 on the Bitcoin chart may signify a potential price drop, with the next significant support level expected around $33,000. He mentioned that this key area is a critical zone marked by a convergence of three important technical indicators, including a lower boundary of a parallel channel, a 0.5 Fibonacci retracement level, and a 50-week simple moving average.

According to Martinez, the combination of these critical factors creates a great line of defense for Bitcoin’s price, potentially providing a support zone to prevent future declines in the cryptocurrency.

Featured image from Analytics Insight, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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