A Call for Bitcoin to Drop Below $2,000 Rears its Ugly Head Yet Again
Henrik Zeberg, a macroeconomist, took to Twitter to share his bleak forecast of bitcoin price which he is expecting to decline to $1,760 by the end of June because of a breaking trendline, as per his chart.
But he isn’t calling for $1,000. Fib levels and good support at $1,760 has him calling for this target, “127% of a = c of Y. ”
But he is bearish on S&P 500 as well and believes the downtrend in gold has already started. This isn’t the first, and not expected to be the last time that people call for the leading digital asset to collapse.
Recovering after the correction
After the 2017 bull rally, when bitcoin price started correcting, there have been talks of the digital asset crashing to $1,000.
During the bear market it made sense, as in the last one as well, bitcoin corrected hard from its all-time highs. And in December 2018, the flagship cryptocurrency found its bottom around $3,200.
Since then, the flagship cryptocurrency has been slowly making its way upwards with a period of accumulation and consolidation.
No doubt, the March 2020 sell-off took everyone by surprise when BTC plunged to $3,800. But this was during a time when from equity markets to traditional safe haven assets like gold everything plummeted.
Moreover, a DoS attack on crypto derivatives platform BitMEX was the one pushing the price down to $3,600 on the exchange and could have even taken it to zero.
But such occurrences are the result of black swan events or an attack on a crypto exchange.
Since then, however, bitcoin price has made a significant recovery and is currently up over 140% trading around $9,000. But some are still calling out for even a deeper fall.
No need to go over into the speculative world
Already bitcoin has died 380 times which started in Dec. 2010 and the latest obituary was made this month only.
Just last week, Peter Mallouk, president and chief investment officer of wealth management firm Creative Planning, said speculative assets like bitcoin or gold and silver are wrong investments.
According to him, investors should rather focus on buying stocks of traditionally stable companies that are currently trading low because of the coronavirus shutdown. Mallouk said,
“You have incredible companies that we know are not going anywhere, selling for half off. There is no need to go over into the speculative world.”
He further clarified about bitcoin recently,
“I simply say it’s speculative and that speculation is different than investing. I also don’t think it will work out but don’t have a strong position there.”
On the other hand, just this month, billionaire investor Paul Tudor Jones invested nearly 2% of his asset in bitcoin and called it an “inflation hedge.”