Could this analyst be right in projecting Bitcoin’s ‘inevitable plunge’ to $20k
The cryptocurrency market welcomed Bitcoin‘s recent price surge, with the king coin crossing the $48k mark. Over the last 48 hours, investors are once again feeling hopeful about BTC’s future price action.
That said, is there a flipside to this? Given the current scenario, is it possible that BTC could once again start dwindling and go as far down as $20k or even further?
Just another awesome discussion with @davidlin_TV on @KitcoNewsNOW
as we delve into some major #stockmarket triggers, #Bitcoin, #Gold, #yields and more. Enjoy!https://t.co/P7jykVIrdY
— Gareth Soloway (@GarethSoloway) August 19, 2021
Gareth Soloway, the Chief Market Strategist of InTheMoneyStocks.com, discussed this very question during a recent interview. Surprisingly, Soloway remains one of the few to maintain that Bitcoin will still lose value and drop to $20,000 on the charts. According to him,
“…Bitcoin will eventually get to the $18k to $20k mark, there’s really no question in my mind.”
He asserted that Bitcoin is replicating the major rallies of 2013 and 2017. At the same time, Soloway noted that Bitcoin still had an upside target of about $50,000 – $52,000, although only for a short period. He added,
“In the short term […] go test this head and shoulders neckline, what we call as ‘retrace to the scene of the crime.’ I still think you have an upside of $50 to $52k.”
Bitcoin’s historical price movements have noted significant price corrections. Drawing a comparison with BTC’s price trajectory in 2013 and 2017, the strategist remained confident about the “inevitable” plunge in the long run.
In fact, Soloway was also quick to chart out the crypto’s movements in 2013 and 2017. According to him, both the aforementioned “mega-moves” don’t signify anything and a fall seems imminent.
The analyst also presented another interesting viewpoint, however. In the analyst’s opinion, there is a possibility the downside and upside movement in Bitcoin’s price will accelerate and the number of market participants will impact the price.
“Then the question you have to ask is, is that because you have a lot more participants in the market now versus 2013, 2017, a lot more institutions maybe that were buying the dip or people that were buying the dip. Maybe it has something to do with all the liquidity and dollars that the fed has been flooding into the market.”
Bitcoin’s value plunging by almost 50% from $64,800 might just be feeding into the strategist’s opinions on the crypto. It’s worth noting, however, that not everyone agrees.
In fact, a recent article argued that BTC is actually very unlikely to fall down to even $30k in the future. As per Glassnode, Bitcoin’s network retains much of its strength too.
Needless to say, opinions remain split on where Bitcoin might head next.