Cryptocurrency analyst Aaryamann Shrivastava has made a prediction about the price of Bitcoin for 2024, highlighting a possible scenario of decline in the coming months.
Shrivastava, known for accurately predicting Bitcoin’s fall after the asset hit $31,000 this year, has noticed a recurring pattern that can give investors an idea of what to expect in the coming years.
Currently, the price of Bitcoin is hovering above the $27,000 mark, following a few days of positive results followed by a slight drop in the last 48 hours. However, Shrivastava pointed to an important indicator, the Relative Strength Index (RSI), which may indicate an imminent change.
According to him, since the beginning of the year, the RSI has recorded a three-month period in which it corrects itself after surpassing the overbought zone above the 70.0 mark.
“Following this pattern, the next three months will likely witness a market cooling, accompanied by a price drop. Historically, this period has resulted in an average drop of 18.3%, which would lead Bitcoin to reach $22,840,” he said.
The analyst points out that although this pattern represents a considerable decline compared to the price peak of 2023, it would still be well above the level at which BTC was on January 1st of this year.
However, this short-term analysis, according to him, fits into a broader pattern that has been observed over the past nine years.
Shrivastava noted that since 2014, Bitcoin has exhibited a one-year pattern of losses followed by three years of positive returns. This has remained true regardless of external factors such as the COVID-19 pandemic or market contagions in 2022.
“Thus, if the price of Bitcoin follows this pattern, 2023 will establish a year of gains, with a 37% increase compared to the opening price of 2023, which was $16,496. This gives investors hope that in 2024, the cryptocurrency will witness a considerable price increase,” he concluded.