Bitcoin has rallied strongly since the $3,700 lows established in March. From the bottom of the crash, the cryptocurrency is now up just shy of 150%.
Although this upswing has convinced many in the industry that the bear market is over, some beg to differ. Prominent analysts and commentators say that the cryptocurrency has a chance at retesting the $3,000s.
Backing this prediction, they cite simple technical factors and the looming specter of a deeper recession in the global economy.
Related Reading: Crypto Tidbits: Satoshi Isn’t Dumping His BTC, China ‘Bans’ Cryptocurrency Mining
Bitcoin Poised to Plunge Towards $3,000s
Earlier this year, a prominent trader called for Bitcoin to fall to the $3,000s and for XRP to reach $0.11. At the time, this call was laughed off, as the cryptocurrency market was surging higher.
The trader has since been proven correct as Bitcoin, XRP, and other cryptocurrencies took a nosedive in March due to a worsening global economy.
While BTC has since recovered, the same trader still expects Bitcoin to correct even lower.
He indicated in the chart below that he still sees a scenario where the leading crypto falls to $2,000, and maybe even as low as $1,000.
Chart from il Capo of Crypto
The calls for an extension to the Bitcoin bear market have been echoed by Ross Ulbricht.
Ulbricht is a very early cryptocurrency adopter that is known for running the Silk Road marketplace.
He explained in a Medium post titled “Bitcoin by Ross #9: A Strong Signal for Lower Prices” that Elliot Wave analysis suggests BTC is in the second phase of a multi-year bear market.
Here’s my latest #BitcoinByRoss post: A Strong Signal for Lower Prices.https://t.co/2VxoyT28NZ
— Ross Ulbricht (@RealRossU) April 11, 2020
Elliot Wave is a form of technical analysis that indicates markets move in predictable wave phases due to investor psychology.
Ulbricht, who is also an early trader according to some accounts, suggested that Bitcoin could return to the $2,000s or even $1,000s by June or July, or well into 2021.
Related Reading: The $90 Million Bitcoin Pizza Story Has an Unexpected Silver Lining
The Rally on the Other Side Will Be Huge
Despite the expectations from prominent market participants of downside, the consensus is that the rally on the other side will be large.
Ulbricht, for instance, wrote that the sky is the limit for Bitcoin in the long run:
“I am still bullish long-term… The point is — long term — the sky is the limit. The remainder of wave II and the start of wave III will seem like insignificant fluctuations by the time wave III is under way. Decades from now, anything below $20,000 will seem cheap.”
There are fundamental reasons analysts have to be this optimistic.
Tuur Demeester, the founding partner of Adamant Capital, recently explained that the money-printing by governments is making $50,000 Bitcoin possible.
The idea goes that with there more fiat money in the system than ever before, BTC stands to greatly benefit due to its scarcity.
Featured Image from Shutterstock