After reaching a daily low of $40,000 on Monday, bitcoin has picked up and is now changing hands for around $44,000. Traders are looking to the next levels for the cryptocurrency, with a popular crypto analyst highlighting the “max pain” scenario for the price of BTC.
Credible Crypto pointed out on X that BTC will probably leave a lot of traders on the sidelines as it rallies to new all-time highs. Most in the crypto community expect the bullish momentum to continue with the U.S. SEC’s greenlighting of a spot bitcoin (BTC) ETF now nearly universally envisioned as soon as January 2024. If approved, most market observers expect a gigantic influx of institutional and retail money to flow into the crypto market.
The said price highs would entice some traders to go all in on Bitcoin, but it will be too late. The pseudonymous analyst notes that the investors entering the market at the top will be in for a huge surprise as he believes BTC will then enter a multi-year slump.
“Max pain is new all-time highs pre-halving while everyone fades BTC at 40-50k and then massive dump into 5+ year mega bear post-halving when everyone buys the dip thinking we have another 1-2 years left in this “new bull cycle,” Credible Crypto recently said in a post on X.
The strategist then noted that Bitcoin and the crypto market at large have been in a decade-long macro uptrend. As such, a multi-year drawdown would be good for the long-term health of the industry as it would weed out all the “junk” assets:
“Crypto has never had a secular bear market, and every market has one. Nothing goes up only forever. This would be akin to the dot-com bust of the early 2000s that preceded what has been essentially a multi-decade secular bull for tech stocks. I am basically expecting the same for crypto — a secular bear to wipe out all the junk.”
In Credible Crypto’s opinion, this significant pullback would be followed by a “multi-decade bull run in which the Googles, Apple, and Amazons of the crypto space will be established”.
BTC Headed For $180,000 Ascent
Credible Crypto has made an interesting bitcoin prediction. The analyst suggested the leading cryptocurrency will see a parabolic rise to the $180,000 price point before the “real bear market” begins.
His prognosis is likely based on the century-old technical analysis principle, the “Elliott Wave Theory.” The theory splits a price cycle into two sets; one consists of five uptrend impulse waves, and the other has three corrective waves.
Per his charts, Credible Crypto points to the possibility of BTC’s price skyrocketing to $180K during its five-wave cycle in the future before nosediving into a prolonged market swoon.