There is a “high probability” that bitcoin will experience another price drop, according to trader Jake Wujastyk.
Jake Wujastyk, vice president of TrendSpider LLC, believes the 2017-2019 monthly closes are a “inevitable zone” for bitcoin, the largest crypto-currency to be tested.
Jake Wujastyk adds that there is a decent probability that such a scenario could play out.
After reaching $19,666, the peak of the previous bull run, bitcoin closed December 2017 at $13,880. The largest crypto-currency entered a brutal bear market shortly after reaching its peak.
In 2019, bitcoin experienced a major rally in the first half of 2022, reaching an annual high of $13,880 in July 2019. The rally was not sustainable, and the largest crypto-currency ended up closing that month at $10,760 before plunging lower in the following months.
Earlier this month, Jake Wujastyk noted that Bitcoin had formed a bearish flag pattern.
Today, the largest crypto-currency is trading at $16,561. Bitcoin has now collapsed more than 76 percent from its record high of $69,044 last November.
Last month, trader Peter Brandt said it was still possible that bitcoin would eventually crash to zero.
The dramatic implosion of the FTX exchange was a huge blow to the crypto’s reputation.
In a recent article published by the Wall Street Journal, U.S. businessman Andy Kessler argues that the final price of crypto-currencies could be zero.