- A well-known crypto analyst anticipates a tumultuous path for Bitcoin, possibly reaching new highs followed by a significant downturn.
- The prediction is grounded in Elliott Wave theory, suggesting a dramatic five-wave uptrend and subsequent bear market for Bitcoin.
In an eye-opening analysis that’s sending shockwaves through the cryptocurrency sphere, a prominent crypto analyst, known as Credible Crypto, has laid out a future for Bitcoin that could leave many recent investors reeling. Addressing his substantial following on social media, the analyst envisions a scenario where Bitcoin rallies just enough to draw in retail traders before plunging into a prolonged bear market.
This forecast, while unsettling, sheds light on the volatile and unpredictable nature of cryptocurrency markets, and its implications are being hotly debated across platforms “Credible Crypto/X”. Reflecting on this forecast, Credible Crypto succinctly encapsulates the sentiment with a tweet:
— CrediBULL Crypto (@CredibleCrypto) November 24, 2019
Credible Crypto’s analysis hinges on a ‘Max Pain’ scenario, a concept in financial markets referring to the point at which an asset’s price causes the maximum loss to the largest number of investors. In the case of Bitcoin, this could entail a deceptive rally to unprecedented heights, tricking many into investing at the peak before a drastic fall.
The Elliott Wave Theory at Play
Central to this prediction is the Elliott Wave theory, a method of technical analysis that identifies crowd psychology patterns in market prices. According to this theory, Bitcoin is poised for its fifth and final wave of growth, potentially reaching as high as $180,000, before succumbing to a severe and extended bear market.
Despite the ominous short-term outlook, Credible Crypto believes that a bear market could be beneficial for the long-term health of the crypto market. Drawing parallels with the dot-com bubble, the analyst suggests that this phase could eliminate weaker elements in the crypto space, paving the way for a robust and enduring growth, similar to the rise of tech giants in the post-dot-com era.
This perspective offers a silver lining, hinting at the emergence of the ‘Googles and Amazons’ of the crypto world following the anticipated turmoil.