by Adam Taggart
I cautioned back in December that Bitcoin and the crypto complex at large were likely caught up in a massive speculative bubble, perhaps the most aggressive one in all of history.
If indeed the case, we could expect a retracement similar to the ‘classic’ bubble curve seen time and time again as speculative manias have unwound.
This chart maps Bitcoin’s price action vs several of history’s largest bubbles. You’ll see it has been right in line with the others so far — and note that this chart is from April. Bitcoin’s price has dropped further since then:
It’s increasingly looking likely that Bitcoin will continue following this classic retracement curve as the remaining speculation drains out. As mentioned in my original post above, technical analysts are predicting that ~$4,000 is the next support level, and then if broken, ~$2,000 after that.
As painful as it may be to consider for current crypto holders, the classic bubble retracement suggests that $2,000 is certainly possible.
Will Bitcoin get that low? Who knows? At some price, enough investors will feel comfortable putting money in at a volume that will end the descent.
If the price indeed gets close to $2k, I’ll definitely be one of them.