Could BitCoin Prices Fall Below $3,000? Silk Road Founder Ross Ulbricht Thinks So
Silk Road marketplace founder, Ross Ulbricht, has released an analysis where he has some bad news: He believes that BitCoin could fall below $3,000, which could be bad for all of those investors out there.
Ulbricht, who has been in jail since he was sentenced to life in prison in 2015, continues to publish analysis reports concerning the price of BitCoin.
He is using a theory called the Elliott Wave theory in order to perform his research. Created by a man named Ralph Nelson Elliott, the Elliott Wave theory works to analyze the highs and lows of the market. Back in December, while using the Elliott Wave theory, Ulbricht released a report stating that he believed that BitCoin could hit prices up to $109,000. He explained that he believed, based on this theory, that it could take more than a year to do this, but it could happen.
Things have changed, though…
A Big Drop on the Way?
The latest report from Ulbricht’s prison headquarters is a bit different, and it calls for a drop…a big one. Now, he believed that the price of BitCoin could fall hard, even hit prices under $3,000. In fact, on April 11, 2020, Ulbricht said that there was “no limit to how low it can go.” There is also no limit to how long it might take.
How low could they really go? Well, let’s take a look at history. In the two previous bear markets, BitCoin prices fell by 86% and 94%. If you apply that to the current prices, we could see prices fall all the way down to $1,200.
If this does happen, how long could it take? Again, we can look back in history. If we apply what we learned in the first bear market, it could last until July 2020. If we look at the second bear market, these prices could head into 2021.
The Elliott Wave Theory – Problems
Though using a theory for predicting the price of BitCoin is common, Ulbricht’s report has a few things missing. For instance, the report does not consider outside influences like how coronavirus might affect the economy. On top of this, he believes that these falling prices could lead to “extreme pessimism” and even “antagonism” in regard to BitCoin. Things like this usually aren’t considered when predictions are made.
Ulbright did say, however, that should this fall in prices occur, it will take prices to new highs, which would be “well worth it.”
Not all traders are in agreement with Ulbricht’s market prediction, of course. Some have even said that Ulbricht is not using the Elliott Wave theory correctly. This has lead to skepticism among traders.
The Elliott Wave theory has always been a bit controversial, and some traders believe that this theory is no better at predicting the market than if you used a deck of tarot cards. Others, however, are strong believers in the theory when it is applied correctly. In this case, only time will tell if the predictions of Ulbright are correct this time and where BitCoin prices might fall in the future.