Investors should be ready for a BTC drop of 80% from its November high, according to the CEO of the cryptocurrency startup DataDash.
When the first cryptocurrency dipped below $20,000, Nicholas Merten cautioned against becoming comfortable as bitcoin recovered after a weekly low. to reverse for a bullish trend:
“I don’t want investors to get too excited about the current rise in bitcoin. Maybe in another day or two they will be profitable and bitcoin will even go back to $22,300.”
However, if things go south rapidly, Bitcoin might have a 75 percent or even 80 percent fall. Understanding how the loss can spread exponentially, even if the asset just moves down in percentage terms by a few points, is one of the largest obstacles for some investors. It won’t simply be a few hundred or thousand dollars down if we move from a usual 75 percent to an 80 percent retracement. From $17,500 to $13,700 will be the price drop for bitcoin. The BTC will then test the interim high of the bull market, which was $14,000 in June 2019, said Merten.
The analyst claims that he is unsure whether bitcoin would decline by 80% from its record high of $69,000. Despite previous trends, macroeconomic volatility can result in a sharp decrease in the value of the first cryptocurrency. Bitcoin will likely reach $100,000 by the end of this year, according to co-founder and CEO of Blockstream Adam Back.
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