Jan 7, 2022 15:44 GMT
His pessimistic prediction is supported by fluctuations in the value of bitcoin, which is currently trading below $ 42,000.
In their comments for Yahoo Finance Live, Gareth soloway, Chairman and Chief Financial Officer of US investment firm InTheMoneyStocks.com, was skeptical of Bitcoin’s ability to attain $ 100,000 per unit for the foreseeable future.
“In the long run I love cryptocurrencies, I love bitcoin. But the charts – and I’m a technician – just don’t show it,” he lamented.
Based on observations of fluctuations in the value of bitcoin, which currently quotes less than $ 42,000, Soloway argues that the major digital currency can suffer significant losses.
“For me, bitcoin carries with it a ‘head and shoulders’ pattern. Believe it or not, in early 2022 or 2023 we can see bitcoin drop below $ 20,000“The US investor opined. In technical analysis, a ‘head and shoulders’ pattern is used to describe a graph that predicts a change in a trend from bullish to bearish.
“Bitcoin and cryptocurrencies will see their dotcom moment over the next year or two, “predicted Soloway, referring to the dot-com bubble that gained strength in 1997 and burst at the beginning of this century, when hundreds of Internet-linked companies, attracted to the new form of the knowledge economy and business , broke when they reached their peak.
However, he recalled that this forecast does not mean that bitcoin is doomed to failure. “In 5 years, bitcoin can easily reach $ 100,000, probably even $ 250,000,” he said.
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