After zipping past the $10k level just days ago, the pioneer cryptocurrency suffered an unprecedented flash crash on Saturday. From trading at around $9,500, BTC shed over 10% of its value to hit $8,100 all within the span of 10 minutes. The top cryptocurrency has since recovered slightly to $8793.83 at press time.
For some market observers, this huge move south would suggest that the top crypto is carving a bottom. However, one trader believes that BTC investors should brace for more pain as the coin tumbles even further.
Why $1,760 For BTC?
A popular Elliottician named Henrik Zeberg took to Twitter on May 10 to share his prediction on bitcoin’s price in the future.
According to the trader, the bitcoin price is likely to drop to $1,760 in the near term. The trader presented indicators shown by Elliot Waves, which indicate that BTC reached a local top after the recent rally above $10K.
He sees the bottom of Wave C being reached sometime in June this year. Interestingly, this would mark a one-year period since bitcoin reached the top of Wave B after surging to almost $14K.
Per Zeberg, this is likely to drive the BTC price down to $1,760. That’s an over 79% dump from the current price. He explains that this massive correction is likely due to the skyrocketing real rates. The real interest rate is basically the nominal interest rate minus the inflation rate -which he thinks is a key driver of gold, silver, and BTC.
#Bitcoin may have topped in smaller wave (B) of Y. Top here seems logic, as 100% decline of (A) gives us old bottom from 2018 and 1.27% (which is often length of C wave) gives us ~1760. My updated target is latter: 1760 USD before bottom. Why decline? Due to soaring real rates! pic.twitter.com/Gm5tUYWRhE
— Henrik Zeberg (@HenrikZeberg) May 10, 2020
Trader Believes Bitcoin Will Post New All-Time Highs
It should be noted that it is not all bad news for the King of cryptocurrencies.
Zeberg believes BTC has great upside potential after the possible drop to $1,760. In a follow-up tweet, he noted that a fall to his painfully low target would not be a final nail in the coffin for the bitcoin price.
In fact, he expects bitcoin to print new all-time highs next year as people flee from fiat currencies. Forthcoming deflation gives Zeberg the confidence to predict that BTC has the potential to reach $34,000, at the very least.
He further notes that the crypto-asset can even climb to as high as $94,000. Therefore, a drop to the $1,000 level should be a good opportunity to buy before BTC takes off to astronomical levels.
Let’s look at the potential to the upside – following major bottom. The major triangle is a continuation pattern – hence any strong decline to ~1760 is not evidence for #Bitcoin‘s demise. The upside pot. is min. 34k – likely 54k – pot. 94k during phase of Run-from-Fiat-currencies pic.twitter.com/sQ6bWHkm8U
— Henrik Zeberg (@HenrikZeberg) May 10, 2020
The Bottom Line
Bitcoin recently fell from $10,000 to $8,100 in a little over 24 hours. Unfortunately, this bearish trend comes just days before the hotly-anticipated block rewards halving event on May 12. If trader Henrik Zeberg is right, BTC’s correction is likely far from over.
But there is a silver lining as he expects the cryptocurrency to rise like some Phoenix from the ashes and register a fresh all-time high.
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