Bitcoin can go to $20K or even lower however I will tell you one thing, it won’t be this month. Why? Because the funding is very high for shorts. Right now longs are being paid which is a rare event. Means that there are way too many people being bearish at the bottom, which is never a very good sign.
We are close to going below $30K again and I think we will get a short squeeze sooner rather than later. Because there is nobody left to sell anymore except maybe the shorts which will have to buy back soon.
So we will not get a nasty $5K capitulation wick like everybody is predicting. Maybe are comparing this to the old $6K support back in 2018 but one thing is different. Back then the funding was positive or flat, it wasn’t negative as it is now.
So I am predicting that the range low will hold and we will chop around for the next few weeks.
The thing about short squeezing is that the upside is wide open, and nobody talks about that. That 40k is not that long time ago and right now up until 40k there is no resistance, which would destroy all the shorts there are at the moment. Which is why I believe a price increase towards 40k once again is not that incredibly difficult, however a drop to 20k is, not because logically both can't happen, it could definitely happen, as I always say bitcoin could be 1 dollar or 1 million dollars (in long term) and they are both technically speaking possible (although we know neither will happen soon).
So what does the current situation tells us? It tells us that in order for us to go to 20k that would require A LOT of people selling, whereas in order to go to 40k only half required to buy, so when one side is easier, usually that side is where we go.