I think that there will a decline in price but it would be as bad as you suggest. BTC might get baco to high 900's or close to 1000$'s but I am not convinced that it could be any worse than that.
but i do not think that we are going down from 1200 USD level. i think the increasing trend of bitcoin will continue for a long time and hope that this time the price of bitcoin will easily cross 2000 USD level.