Bitcoin (BTC) Price Is Likely to Plunge to $1K, Says Silk Road Founder. Here’s When This Bear Market Could End
Forget about $100,000. ‘Dread Pirate Roberts’ Ross Ulbricht expects the leading cryptocurrency to plunge to $1K before another bull run
Ross Ulbricht, the founder of the infamous Silk Road dark web marketplace, has spotted ‘a strong signal’ for lower Bitcoin (BTC) prices.
According to his new price analysis that relies on the Elliott Wave theory, the price of the leading cryptocurrency could plunge to as low as $1,200.
Ulbricht states that BTC is currently in the last stage of its first cycle degree bear market. Wave II is comprised of three primary-degree waves, with wave C being the largest one.
It is not clear how low wave II can go, but Ulbricht notes that the two previous bear markets resulted in 86 percent and 94 percent drawdowns, which means that there is more pain in store for the bulls. Hence, he notes that a similar price plunge could take Bitcoin all the way down to $1,200.
According to Ulbricht, it’s hard to estimate the duration of this bear market, but, based on the historical data, it could end this June.
‘Estimating the extent and duration of wave II is difficult and imprecise. There is no limit to how low it can go (except $0) because wave I started at $0.’
Ulbricht also says that Bitcoin could invalidate this bearish scenario is its price surges back above $14,000 (its 2019 high). However, this turnaround seems ‘unlikely to him.’
‘If the price rises above the peak near $14,000, we will have to reevaluate our interpretation, but at this point that seems like a very unlikely scenario.’
Back in December, Ulbricht predicted that BTC could surge to $100,000 in 2020, but the drop below the start of wave 2 ($4,200) on March 12 made such a bullish scenario improbable.
However, if BTC were to drop to this level, Ulbricht would view it as a ‘major buying opportunity’ before the start of wave 3.
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.
Author: Sun, 04/12/2020 – 08:55
Bitcoin Halving Interest Spiking on Google Ahead of May Date
While Covid-19 and its impact on the world around us have had a significant sway on the news and interest of people, including markets, and cryptocurrency markets, there is evidence that the minds of those who have an interest in Bitcoin are looking to the future.
Next month, Bitocin will undergo its third mining reward halving as each new block will now offer up 6.25 BTC rather than 12.5 BTC. This will have a significant effect on the mining ecosystem, but it could also impact the price of Bitcoin. Just how it impacts Bitcoin’s price going forward is still uncertain, but based on historical evidence, in the long term, it should lead to higher prices.
While this is yet to be seen in a market that has been maturing, but recently heavily affected by the global pandemic, one thing is sure is that the interest in google searches is growing. Data from Google Trends indicates that search interest in the terms “Bitcoin halving” and “halving” have both seen a large growth in recent months.
The chart from Google shows that over the past 12 months, global interest in the search term “Bitcoin halving” has risen from a reading of 19 a year ago to around 78 at the start of this month, shortly after peaking at 100 in the middle of March.
Perhaps expectantly, the rise in the interest of the halving was also timed with the growth in the price of the coin that came at the beginning of the year. Bitcoin has been known to grow in value with heightened Google interest, and the interest is known to grow with this in a ‘Satoshi Cycle’.
The highest spike in interest over the last year correlates with Bitcoin’s rally from the $6,400 lows of December to $10,500 by mid-February, suggesting that halving excitement may well have been a catalyst.
This has taken a turn since the black swan event of the Covid-19 pandemic and its associated crash to around $3,800 in March, apparently caused by wider panic in all markets.
Bitcoiners have had the luxury of letting one of its smaller forks, Bitcoin Cash, take the brunt of a modern-day halving to see the impact. While Bitcoin and Bitcoin Cash are fundamentally different, the impact of the halving on BCH has not done much for its price, but it has severely damaged its hash power.
Author: Darryn Pollock
Why $6,600 is the Level To Watch During Bitcoin’s (BTC) Weekly Close
The 2020 Easter weekend will probably be remembered for the innovation of going totally virtual with activities such as Church services, family get-togethers as well as virtual Egg hunts. With the world on high alert due to COVID19, Social distancing has proven itself as being the most effective method of curbing the spread of the virus. With relation to crypto trading, the Bitcoin (BTC) trade volume has seen the usual drop during a major holiday weekend. Such drops are also witnessed during Christmas and New Years. The 7-day Bitcoin trade volume chart below courtesy of Bitcoinity.org further gives a better representation of the drop this weekend.
In our earlier analysis of XTZ/USD, we had stated that Bitcoin looks set to retest previous support zones at $6,600, $6,500, $6,200, $6,050 and possibly $5,800. These levels have been providing reliable support for Bitcoin since the Coronavirus crash of mid-March.
Further checking our favorite 6-hour BTC/USDT chart, we observe the following:
When we zoom out to the daily chart, we observe a totally different bearish picture.
With Bitcoin’s weekly close only a few hours away, $6,600 is the level to watch as it provides a level of solid support. BTC’s trade volume has drastically reduced due to the Easter weekend and could provide the final ingredient for a bearish scenario for the King of Crypto. As with all technical analysis, the reader is advised to use stop losses to safeguard their leveraged positions against sudden volatility.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
Author: John P. Njui·Bitcoin NewsOpinion·April 12, 2020·2 min read·195 views