Fidelity Executive Issues Bitcoin Correction Warning – Here’s How Low BTC Could Drop
The global macro director at financial giant Fidelity, Jurrien Timmer, says he’s noticing a pattern that suggests Bitcoin’s price has not yet hit a bottom.
Citing the Elliot Wave Theory, a technical analysis method which forecasts price fluctuations by mapping out repeating patterns of waves, the Fidelity executive predicts Bitcoin could hit a low of $23,000, in the worst-case scenario, or slightly below $30,000.
“Looking at the chart pattern since the recent high of $64,870, I can’t help but notice that a textbook 5-wave decline may be unfolding…
Let’s apply this to the Bitcoin chart. So far it looks like wave 1 down was from $64,870 to $47,079 for 11,791 points. Wave 2 went up to $59,588, which is a 70% retracement of wave 1. Wave 3 was an impulsive 29,571 points down to $30,017, which equates to 1.66x wave 1.
So far the recovery from the wave 3 low looks like a 4th wave zigzag retracing 37% of wave 3. In other words, everything about this wave pattern so far appears to be textbook, which suggests that a wave 5 decline could still lie ahead.
If wave 5 = wave 1, it projects down to $23,076 as a final low. If it’s only 0.618x wave 1, we may only slightly undercut the current low and bottom at $29,872. So to me that’s the range of outcomes for a potential 5th wave sequence.”
The senior Fidelity executive says he thinks BTC’s ultimate bottom will be above the $23,000
“…my hunch is that the low will be closer to $30,000 than $23,000, per the head and shoulders price target below. The distance from the head to the neckline was $17,000, which measured from the neckline is $30,000.”
Timmer also adds that his theory could be invalidated if Bitcoin appreciates by about 10% from the current levels. At the time of writing, Bitcoin was trading at $37,300.
“What would negate the 5-wave sequence? A sustained rally above $41,000 should do it, in which case we could think of the current retest as a ‘failed 5th.’”
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/graphicINmotion/Mishainik
The post Fidelity Executive Issues Bitcoin Correction Warning – Here’s How Low BTC Could Drop appeared first on The Daily Hodl.
Go to Source
Author: Daily Hodl Staff
