Fresh of its descent from $10,000 and the freak crypto crash in September, Bitcoin dropped to a level below $8,000 again on Sunday.

The popular cryptocurrency's 24-hour low is $7,777.63, according to Coindesk.

This latest drop seems to attenuate the forecast of Bitcoin's price multiplying to more than tenfold by 2020 since the short-term outlook for bitcoin isn't too savory.

Bayerische Landesbank published a report predicting Bitcoin could hit $90,000 by May next year. The pricing model that the German bank's research team used to arrive at that valuation is the stock-to-flow approach, which measures the "hardness" of an asset.

With a high stock-to-flow ratio -- a large existing supply relative to its limited production -- an asset becomes more hardened against the factors that might affect its price.  

According to the same research, Gold has a high stock-to-flow ratio with 58, but Bitcoin is poised to overtake that at a much rapid rate.

Bitcoin Halving

A large part of this price projection for the cryptocurrency is centered on Bitcoin's scheduled "halving" next year. Halving refers to the crypto's algorithm cutting the rewards of miners by half every four years (currently at 12.5 bitcoins).

With miners receiving less incentive to process transactions that add blocks to the blockchain, and with the rising cost of keeping a mining operation, plenty would abandon the activity, ergo fewer "flow" of Bitcoin will enter the market making the existing supply more valuable.

The research points out that this scheduled halving isn't priced into Bitcoin as of the moment, and that's why it's lingering at prices that are nowhere near the model's $90,000 forecast.

However, Bitcoin's price will still depend on how much people will want to pay for it as the demand for the currency will ultimately dictate its price.

The technicals paint a different picture. For one, Bitcoin crossed below the 200-day moving average on September 26 and is still trading below it, which could indicate long-term bearishness. Daily RSI levels show that Bitcoin is back in the oversold territory after crossing a few notches above it at the start of October.

A bounce off $7120 might trigger the bulls.

bitcoin A file photo of a visual representation of the digital Cryptocurrency, Bitcoin on October 23, 2017 in London, England. Photo: Dan Kitwood/Getty Images