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After an epic monthly close, Bitcoin bulls have every reason to feel complacent. After months of bleeding, BTC seems to be ready for another bull run the upcoming halving just around the corner.
That said, there are traders who remain extremely bearish on BTC despite its uplifting price rally. Elliott Wave practitioner Henrik Zeberg is convinced that the leading cryptocurrency could drop to as low as $2,000 without even reaching $10,000.
#Bitcoin Wave C in 5 waves should bring us down to ~2000 USD. Often trendline set by wave 2 through 4 - gives the bottom of wave 5 (through 3). I will eventually buy #Bitcoin - but not yet...... not yet.....! pic.twitter.com/GDu7RB8Cx2
— Henrik Zeberg (@HenrikZeberg) February 1, 2020
A major buying opportunity?
The Elliott Wave theory presupposes that any market tends to move in repeating patterns. Zeberg’s chart shows the corrective phase that constitutes of three waves (A, B, and C). Apart from these corrective waves, there are impulse waves that are numbered 1, 2, 3, 4, and 5.
According to Zeberg, the 2-4 trendline could be used to identify that the bottom of the fifth wave 5 could be around $2,000. In such a way, Bitcoin would finalize the C wave that is made up of the five above-mentioned sub-waves and become an attractive buying opportunity for the trader.
Waves can be subjective
It should be noted that this theory is very confusing. There is even a joke about five Elliott traders all showing different wave counts in the same room, which means that there is a high degree of subjectivity there.
As reported by U.Today, Silk Road founder Ross Ulbricht also applied the Elliott Wave theory to determine that the price of BTC could surge to $100,000 in 2020.