Analysts compare Bitcoin’s price action in the early 2000s to the Nasdaq. An expert said that the Bitcoin correction could deepen to $30,000. Here are the reasons…
Scary model in Bitcoin (BTC), is 30 thousand dollars possible?
According to a prominent crypto expert, Bitcoin’s (BTC) market structure over the past three years resembles the Nasdaq’s price behavior in the early 2000s. The crypto analyst, nicknamed Altcoin Psycho, took the Nasdaq’s performance from 2003 to 2008 to get an idea of how BTC will behave in the short-term in his current analysis. Psycho interprets the following technical chart (Nasdaq):
In 2003, the downtrend begins. There is a clear low (1) marked by a rebound, followed by a higher low (HL) and a double bottom in 2004. The Nasdaq saw a pretty crazy parabolic surge in 2005, with a double bottom and a higher (HL) bottom. The 2005 Nasdaq (2) looks eerily similar to where the crypto market is now. We built this range after experiencing this tremendous increase. So the top of the range is 2006 and the bottom of the range is. This range swept its highest point in 2009 and then the lowest point of that range.
What level does the model refer to?
When it comes to Bitcoin, Altcoin Psycho thinks BTC is currently following the Nasdaq chart step by step:
Same situation here. Downtrend formed… Low level was developed in 2018. There’s a kind of double bottom HL shape it looks like 2020… After this double bottom, the markets are really the same: the high range form was April 2021 and the low range form was June 2021. Like the Nasdaq in 2005, we only brushed the high range (November 2021). If we follow that, Bitcoin would theoretically sweep this bottom as well, bringing us around $29,000.
If Bitcoin really follows the Nasdaq scenario, it will lose more than 30% from the current $42,000 region. While the pattern shows short-term negative price action for Bitcoin, Altcoin Psycho reminds us that the Nasdaq started a massive bull run in 2010 that is still going strong today. As another expert opinion, cryptocoin.com You can review the current forecasts of Michaal van de Poppe, which we have included in his analysis, here.
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