Bitcoin Back At $21K After 75% Drop, Where Does It Go From Here?

Bitcoin is experiencing price relief in lower timeframes after the crypto market crashed to its 2020 levels. This pushed the cryptocurrency to a yearly low of $17,500, a 75% drop from its all-time high, and Ethereum to $870 an 82% drop from its all-time high. Related Reading | TA: Ethereum Could Rally If The Bulls Clear This Key Resistance This number is standard for a crypto bear market, Bitcoin is known for experiencing similar crashes in the past and could possibly suggest it has completed a new market cycle. At the time of writing, Bitcoin trades at $21,300 with a 4% profit in the past 24 hours. In a market update, trading desk QCP Capital provided potential scenarios for Bitcoin as it recovers from a crash. The firm expects a potential continuation for BTC’s price as it makes it climbs its way to previous levels. Despite the downside trend, QCP Capital claims BTC’s price saw a positive reaction from the lows as it quickly managed to get above $20,000. In that sense, they believe the selling pressure that took BTC to $17,000 was “less leveraged liquidations and more miners reducing inventory”. Liquidation from leveraged positions often leads to price consolidation as the assets take time to recover. In other words, BTC’s price is likely to continue up and less likely to stay in a specific price area, as it did in the past month when it was stuck at $28,600 and $31,500. In addition, QCP Capital believes the options mar...