Bitcoin Holds At $19,000, But What’s The Worst Case Scenario?

Bitcoin (BTC) recently ended one of its worst months and quarters on record. Bitcoin fell by 37% in June and even by 56% in the second quarter of 2022. Bitcoin again closed in the red last week with a drop of almost 11%. Despite this, the fear in the market seems to be easing slightly:

Bitcoin price remains just above $19,000

The bitcoin price fell by almost 11% last week and was just above $19,000 yesterday morning. Bitcoin then started to rally slightly again, shooting as high as $19,550 last night. However, bitcoin was rejected there and immediately corrected.

Bitcoin briefly found support at $19,300 around midnight, but fell through it a few hours later and the $19,200 also quickly collapsed. Still, bitcoin found enough support at the $19,100 early this morning and then started to climb cautiously again.

At the time of writing, bitcoin comes in at $19,150 on Coinbase and $18,350 on Bitvavo. This brings the BTC price to the same price as 24 hours ago.

That means bitcoin has been consolidating just above $19,000 for more than two weeks now. It’s important that bitcoin quickly recaptures the $19,500 and $20,000, or else there’s a good chance we’ll see the recent low start looking up around $17,800 or more likely going deeper.

Soil process can take months

Despite this, several analysts expect that we may have a rebound around the recent low. That said, other analysts had anticipated a strong bounce before. It shows that the vast majority of investors still remain very cautious.

There is therefore a lot of fear that bitcoin is still a lower low can look up in the coming months. Investors await possible better macro conditions and clearer confirmation of a trend reversal. However, rising inflation means that the Federal Reserve is sticking to its policy for the time being, which means that a recovery may not be forthcoming for a long time to come.

Still, analyst Game of Trades already sees a bottom forming on the S&P 500 chart, with which bitcoin has had a very high correlation for months. However, this can be a process of months before this market also actually recovers.

Worst case scenario for bitcoin price?

The analysts below describe what they see as a possible ‘worst case scenario’ for bitcoin. According to ‘Washigorira’, bitcoin could fall all the way to $10,000 if fear and panic continue to build in the market. Just below $10,000 should be the strongest support according to the monthly Ichimoku chart. Still, this analyst does not expect bitcoin to fall below $14,000.

Analyst Caleb Franzen reports that if support does not hold between $10,400 and $12,500, bitcoin could fall all the way to $6,300. That may sound unimaginable, but 3 months ago no one would have expected bitcoin to dip below $20,000, Franzen says. However, he also expects that the price will not go that deep, but he thinks it is important to take the worst-case scenarios into account.

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