The CEO of crypto company DataDash believes that investors should be prepared for BTC's 80% correction 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. Based on market history, Merten believes that Bitcoin has not bottomed 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 correction in Bitcoin to 75% or even 80%.
“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% correction, it won't just be a couple of hundred or thousand dollars down. The price of bitcoin will decline from $17,500 to $13,700. The BTC will then 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 decrease in the value of the first cryptocurrency, without regard to historical trends.
Blockstream co-founder and CEO Adam Back still expects Bitcoin to reach $100,000 by the end of this year.
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