Bitcoin (BTC) Price Could Drop to $2,000 if This Elliott Wave Analysis Is Accurate

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Sat, 02/01/2020 - 17:52
Alex Dovbnya
Sorry bulls, this trader thinks that the Bitcoin (BTC) price might possibly tank to $2,000 after its January rally
Cover image via www.123rf.com
Contents

After an epic monthly close, Bitcoin bulls have every reason to feel complacent. After months of bleeding, BTC seems to be ready for another bull run the upcoming halving just around the corner. 

That said, there are traders who remain extremely bearish on BTC despite its uplifting price rally. Elliott Wave practitioner Henrik Zeberg is convinced that the leading cryptocurrency could drop to as low as $2,000 without even reaching $10,000

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A major buying opportunity?  

The Elliott Wave theory presupposes that any market tends to move in repeating patterns. Zeberg’s chart shows the corrective phase that constitutes of three waves (A, B, and C). Apart from these corrective waves, there are impulse waves that are numbered 1, 2, 3, 4, and 5. 

image by @HenrikZeberg 

According to Zeberg, the 2-4 trendline could be used to identify that the bottom of the fifth wave 5 could be around $2,000. In such a way, Bitcoin would finalize the C wave that is made up of the five above-mentioned sub-waves and become an attractive buying opportunity for the trader.     

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Waves can be subjective 

It should be noted that this theory is very confusing. There is even a joke about five Elliott traders all showing different wave counts in the same room, which means that there is a high degree of subjectivity there. 

As reported by U.Today, Silk Road founder Ross Ulbricht also applied the Elliott Wave theory to determine that the price of BTC could surge to $100,000 in 2020. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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