Bitcoin could be in for a “massive” and “devastating” correction ahead, according to the author of Mastering Elliott Wave Theory. The long-time market analyst and expert on the subject sees potentially a couple more months to years of rally in crypto, followed by a “potentially massive change in conditions for Bitcoin.”
As wild as it sounds, he even calls for the leading cryptocurrency by market cap to drop to as low as $150 after the current corrective wave is finished. Here’s what the author and analyst expects if the scenario comes true.
Elliott Wave Theory Warns Of Coming Disaster In The Leading Cryptocurrency
Analysts utilize several techniques and practices to attempt to predict future price movements. Some utilize moving averages, others measure trend strength. Various unorthodox methods also exist, such as Gann theory that looks at time and price, or Elliott Wave Theory that examines the impact of impulsive human emotion and its influence over markets.
According to the theory, assets move in impulse waves or corrective waves. Impulses move upward or downward, and are followed by smaller corrective waves until the full impulse move is completed.
Related Reading | Current Bitcoin Price Action Closely Follows Textbook Distribution Pattern
The author of the book “Mastering Elliott Wave Theory” Glenn Neely recently joined a pseudonymous crypto trader for an online video demo of Elliott Wave Theory in action.
Using the BTCUSD yearly line chart only, the analyst and author provides a live-action analysis using advanced technical analysis theories.
“There’s almost no doubt that we’re dealing with corrective action,” Neely claims, adding “the question is, what kind of correction is it.”
Whatever the correction is, Neely says, it is going to be “massive.” The author’s targets may potentially be too deep for anyone to take them seriously. Even Neely calls the claims “unbelievable.” But how deep do things get for the crypto market?
Paint Technical Analysis By Author Glenn Neely | Source: Twitter
Final Year of Bitcoin Rally Could Result In Change Of Conditions, Drop To $150 BTC
“We might be in the final year or two of rally for Bitcoin.”
Bitcoin is on its G-wave according to the expert, who says crypto investors should “worry” about when the wave finishes. Why? Neely warns of a “massive, massive decline.” It’s also in an ABC correction with the C-target deeper than the December 2018 low.
Related Reading | VIX Raising “Red Flag” On Stocks, Could Be Bearish For Bitcoin
But just how low could the leading cryptocurrency by market cap go? According to the so-called Elliott Wave “master’ the correction would go “at least to here,” referencing the mouse pointer on the screen. The pointer lines up with roughly $150, as pictured above.
For those skeptical, even Neely says, this is “unbelievable,” and would be “just devastating for Bitcoin.”
Still, he says there will be an “exciting advance” in the “short term” which could be a “significant move up” to roughly $14,000. However, this isn’t positive for Bitcoin. He says that the price action according to Elliott Wave Theory suggests that there’s a “potentially massive change in conditions for Bitcoin.”
BTCUSD Elliott Wave Theory ABC Correction Example | Source: TradingView
This would include a drop “way below $3,400,” reiterating and emphasizing the “way below.”
As for what might deal Bitcoin such a devastating blow? Neely posits that it could be the emergence of a new Federal Reserve cryptocurrency for the world. The Trump administration suddenly banning crypto in the United States could also be the catalyst for such a change.
With a pivotal election right around the corner, and the dollar strengthening, the days ahead for Bitcoin are especially important.
Can we really believe such a call? There’s no denying the author’s credentials, however, there could be some red flags. For one, it is shocking to see a world-renowned technical analyst using Chrome Paint to perform their analysis.
Another sign includes some negative reviews of his book Mastering Elliott Wave Theory. Amazon reviewers claim the book is “not for the trader who is looking for a practical workable solution” and that “the author wants to boast about his knowledge on elliot wave theory and more so wants to reinvent the concept.”
Neely did create what he calls NeoWave, an advanced take on Elliott Wave Theory that utilizes more than just “intuition.” The bold stunt could simply be a way to promote his analysis, or, he could be giving the crypto market the most valuable warning ever.
The only good news Neely says is that Bitcoin is going to make a highly profitable short soon enough.