A Crypto Analyst Reveals a Bleak Scenario for Bitcoin
A well-known crypto analyst has shared a scenario that could spell trouble for those who joined the Bitcoin bandwagon late. According to the pseudonymous trader Credible Crypto, Bitcoin is likely to surge just enough to entice retail traders to jump in before witnessing a multi-year downtrend.
Credible Crypto predicts that those who entered the market late will be in for a big surprise as BTC experiences a bear market that could last for several years. He believes that reaching new all-time highs before the halving and then experiencing a massive dump into a long-term bear market will catch many off guard.
A Macro Uptrend and the Long-Term Health of the Market
Credible Crypto emphasizes that Bitcoin and the crypto market have been on a macro uptrend since their inception. He argues that a multi-year bear market would actually be beneficial for the long-term health of the market, stating that it is not a negative outlook but rather a realistic one. He compares this potential scenario to the dot-com bust of the early 2000s, which preceded a multi-decade bull run for tech stocks.
The Elliott Wave Theory and Bitcoin’s Future
Credible Crypto’s prediction appears to be based on the Elliott Wave theory, a technical analysis approach that follows crowd psychology manifesting in waves. The trader’s chart suggests that Bitcoin’s major wave five could rally up to $180,000 before entering an extended bear market.
Currently, Bitcoin is trading at $43,041.
Hot Take: A Challenging Path Ahead
This analysis presents a challenging scenario for latecomers to the Bitcoin market. Credible Crypto’s prediction of an upcoming bear market after reaching new highs could catch many investors off guard. However, he argues that this potential downturn is necessary for the long-term health of the market, similar to the dot-com bust and subsequent bull run for tech stocks. It remains to be seen how Bitcoin will perform in the coming months and whether this prediction will come to fruition.
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