The CEO of crypto company DataDash believes that investors should be prepared for an 80% correction in BTC from its November high.
Nicholas Merten warned not to get complacent as bitcoin rebounded after a weekly low when the first cryptocurrency fell below $20,000. 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, the situation can quickly turn for the worse, causing a 75% or even 80% correction in Bitcoin.
“One of the biggest challenges for some investors is understanding how the decline can grow exponentially, even if the asset technically moves down in percentage terms by just a couple of points. If we go from 75% to a typical 80% retracement, it won’t just be a couple hundred or thousand dollars down. The price of bitcoin will decline from $17,500 to $13,700. Then the BTC will test the interim high recorded during the bull market in June 2019 at $14,000,” says Merten.
The expert says that he is not exactly sure if bitcoin will fall by 80% from its all-time high of $69,000. But macroeconomic volatility can lead to a strong decline in the value of the first cryptocurrency, regardless of historical trends.
Blockstream co-founder and CEO Adam Back still expects Bitcoin to hit $100,000 by the end of this year.