A crypto analyst who called Bitcoin’s dramatic 2019 correction says the leading cryptocurrency is well-positioned for a boom and bust cycle that brings BTC to $400,000.
The pseudonymous strategist, known in the industry as Dave the Wave, accurately predicted the start of Bitcoin’s 2019 reversal. On July 11th of last year, with BTC at $11,600, the analyst said Bitcoin appeared to be at the start of a parabolic downtrend that would last until the king of crypto hit $6,000 at the end of the year.
The prediction turned out to be remarkably on point, with BTC reaching a yearly low of $6,425 in December.
Dave is now updating his long-term Bitcoin forecast. By plotting a curve based on Bitcoin’s past price history, he expects BTC to witness decreasing volatility in the decade ahead.
He predicts BTC will spike to around $110,000 at the end of 2022, followed by a crash to a low of $30,000 in 2025.
After that, the analyst believes Bitcoin will begin a long-term grind that will end at around $400,000 in 2029.
In the short term, economist Alex Krüger says BTC may push from its current price of just over $7,000 to $7,700. But after that, he’s expecting another retracement to $6,400.
However, Krüger warns that Bitcoin appears to remain closely correlated to traditional markets, and all bets are off if the stock market takes another beating.
“[Bitcoin’s price action] would depend on what stock indices do. Bitcoin continues to trade like a risk-on asset. Rolling correlations between BTC and the S&P 500 remain around historical highs.”
At time of publishing, BTC is up 1.05% at $7,107, according to CoinMarketCap. Ethereum is up 0.16% at $171.50 and XRP is up 0.30% at $0.1900.
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