The horrors of 2018 and 2017 are back in the crypto market, and crypto traders are not only highly nervous about it, but many are also losing faith in cryptos as the current sell-off intensifies.
Over the weekend, the Bitcoin price took a further beating and not only violated the important support level of 20K, but the price also dipped below 19K for a brief moment.
Although today, we do see some improvement in the price action, traders and investors believe that the current crypto winter is going to last for some time. This is because there is still a lot of pessimism, and until and unless we do not see the domino effect coming to an end from Terra Luna, which has brought Celsius, another yield-producing project, on the verge of bankruptcy, we are not likely to see any light at the end of this tunnel.
On the other hand, HODlers know for a fact that the current sell-off is nothing to worry about. This is because they have been through so many different meltdowns in the crypto industry, and every single bear market for Bitcoin has ended with it claiming a new all-time high. And it is highly likely that this time isn't going to be different as well.
Speaking from a technical price perspective, no matter if you are looking at Bitcoin and Ethereum's prices on the daily time frame or on the weekly time frames, the only thing that becomes very clear is that prices for both are extremely oversold as per the Relative Strength Index.
Any reading near the 30 mark or below 30 confirms that the current pessimism in the market has pushed the prices too far, and a rebound is highly likely. However, as the BTC price has violated the current support level of 20K, it is likely that we may continue to see the price moving lower, and there may be one more big sell-off still in store, which could push the price towards the 15K or even 13K price level.
This means that the price of Bitcoin at that time will have retraced more than 85% from its all-time high. Bitcoin price has dropped more than 80% a few times before as well, and this is not to worry because we usually see the extreme pessimism going away when BTC drops more than 80% and Bitcoin prices move higher again.