A widely-followed cryptocurrency strategist has suggested that the price of the flagship cryptocurrency Bitcoin ($BTC) could undergo a parabolic rally to hit $150,000 in the future, based on technical analysis he conducted.
In a tweet shared with their over 330,000 followers on the microblogging platform pseudonymous analyst Credible Crypto noted that Bitcoin is about to conclude a major corrective period and has the potential to undergo a parabolic rally in the near future.
Per Credible Crypto, macro invalidation at the $14,000 mark hasn’t been hit, and BTC appears to be “right on track” for a 5th wave to move its price up to $150,000.
Credible Crypto’s analysis was made using Elliott Wave Theory, a theory used in technical analysis to describe price movements in financial markets using crowd psychology manifested in fractal wave patterns.
Elliott Wave Theory was developed in the late 1920s by Ralph Nelson Elliott, who in his research noticed repetitive patterns in asset price charges, appearing in different time frames. Elliott attributed these patterns to crowd psychology and created the theory to identify impulse and corrective waves that show trend patterns.
The theory determines that a major uptrend goes through five distinct waves, where three of them are impulse waves bringing an asset’s price up, while two are corrective waves that bring a cryptocurrency’s price down.
Responding to a user pointing out that markets are bearish and fears of an economic crisis have been pushing asset prices down, Credible Crypto responded that during the COVID-19 pandemic sell-off they also heard a similar narrative, but the price of BTC ended up going up nearly 20x.
In the short-term, the cryptocurrency strategist sees the cryptocurrency’s price rise to the $22,000 mark, as Daily Hodl first reported.
As CryptoGlobe reported, Bloomberg commodity strategist Mike McGlone has recently said that Bitcoin and U.S. Treasury bonds are both dropped to “extreme discounts” amid the Federal Reserve’s hawkish moves to tame inflation.
Year-to-date bonds, stocks, and cryptocurrencies have all plunged while commodity prices rose over macroeconomic factors and Russia’s invasion of Ukraine. The analyst noted that as the Federal Reserve keeps hiking interest rates, investors can expect further corrections down the road.
Despite Bitcoin’s poor performance year-to-date, McGlone has recently reiterated he believes that the price of the flagship cryptocurrency will hit the $100,000 mark. Per the analyst, it’s a “matter of time” until Bitcoin reaches six figures.
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