A hedge fund trader and Bitcoin researcher known for his online alias “Spook” recently released a simple Bitcoin prediction chart, making a solid case for $50,000 by the end of 2018. Bitcoin has experienced similar bear cycles throughout the past nine years.
The dominant cryptocurrency would increase in value by several hundred percent and plunge by 70 to 90 percent, recording a mid-term correction. In 2014 for instance, Bitcoin suffered its second-worst correction in history, recording a loss of over 80 percent in a year-long period.
In a sense, 2018 has been a sped-up version of the 2014 correction, and a case can be made that the two corrections are similar in concept because both were caused by the eruption of the retail or individual trader bubble. After a 70 to 90 percent correction, Bitcoin tends to surge by large margins to the upside.
While it first needs to secure a relatively short period of stability, which in crypto is equivalent to a couple of weeks, Bitcoin, along with the rest of the market, has always surged beyond its all-time high to achieve new support levels. Due to this trend of the crypto market and the tendency of Bitcoin to record large gains and losses in a short period of time, prominent crypto investors like BKCM founder Brian Kelly said that traders must expect 50 to 80 percent losses if they anticipate 10 to 20-fold gains within a year.
The chart provided by Spook essentially assumes that Bitcoin bottoms out at the $6,000 region and makes it move towards its all-time high at $20,000 first, and eventually achieves $50,000 by the end of 2018, falling to its previous all-time high at $20,000 subsequent to reaching $50,000. It is unlikely that the chart would all play out in 2018 given that experts expect Bitcoin to bottom out in the range of $3,000 to $5,000, and whether the next peak would be at $50,000. Read more from cryptoslate.com…
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