BITCOIN CORRECTION INCOMING!! WATCH FAST!! BTC ETH TECHNICAL ANALYSIS
Correction will drop bitcoin to $ 1200, says Silk Road founder
Bitcoin price story could repeat itself
There will be widespread pessimism before cryptocurrency starts a new cyclical growth
Bitcoin price may fall below $ 1200, but this will be a bullish signal
The owner of the now closed anonymous trading platform Silk Road believes that before new possible growth, Bitcoin will make a record fall to the bottom.
Now the cryptocurrency market is experiencing the end of the first wave of its bearish trend, according to Ross Ulbricht, owner of the FBI-closed anonymous trading platform Silk Road. [Medium]
Sent to life in prison, Ulbricht believes that Bitcoin has experienced an exceptionally bullish trend since 2012, even though the price of Bitcoin has fallen three times during that trend..
“Estimating the scale and duration of the second [bearish] wave is difficult and may not be accurate. There is no limit to how low it [bitcoin] can go (other than $ 0), because I started with $ 0, “Ulbricht writes..
History may repeat itself
However, there is no hard-and-fast bound on how long a Bitcoin correction can last..
Ulbricht looks at how bitcoin has weathered previous local crashes to determine the likely low for bitcoin..
Two previous bear markets drove the price of the largest cryptocurrency by capitalization by 86% and 94%.
If history repeats itself, then bitcoin has every chance of falling to $ 2800 or even to $ 1200.
The end is near
Based on the values of 2017, Ulbricht still tried to assess the possible boundaries of the second bearish wave.
The latest price swings since 2017 drove the bitcoin price down to $ 3,200 and then back to $ 14,000.
Another protracted fall may lead to new lows below $ 3200, which will be considered the completion of the second wave.
Silk Road creator thinks crash below $ 3,200 will be last opportunity to buy bitcoin ahead of new cyclical rally.
Ulbricht also argues that the completion of the second bearish wave will be accompanied by extreme pessimism in relation to bitcoin on a par with the extreme optimism that the cryptocurrency experienced in 2017..
“In such an environment, it will take courage, but the subsequent price increase to new highs is worth it,” Ulbricht concluded..
The head of BitMEX, Arthur Hayes, adheres to about the same price values. Hayes said bitcoin is highly likely to retest the $ 3,000 level before the cryptocurrency tries to soar to $ 20,000 by the end of the year..