This analyst who predicted a $135,000 run for Bitcoin by the end of 2021 now believes that an 80% market crash is coming… With all cryptocurrencies correcting by more than 10% and the market being more volatile than ever, let’s take a look at why this successful crypto analyst expects Bitcoin to crash by more than 80%.
Current BTC price
After BTC surged to an all-time high of nearly $69K earlier in the month, most of the crypto market has been shedding in November. Several other top coins such as Ethereum, Solana and Cardano have corrected all the top 10 cryptos that have been losing between 6-10% of their market cap in the last week alone.
As seen in the graph above, the analysts at Coin Telegraph stated that the $58,400 level was a key resistance line for the bulls heading into 17th November. So far, this line has been maintained, as BTC briefly surged above $60,890 before correcting to just under the $60K mark soon after. As of November 18, Bitcoin is trading at $59,271, according to Coinmarketcap, after dropping another 2.5% in the last 24 hours.
But many analysts are trying to reassure investors about the current market scenario. A fellow crypto trader that goes by the alias name of ‘Pentoshi’ is confident of BTC running to $62-$63K in the next few days to come.
But while some analysts are predicting a short-term rise, others are predicting a big correction in the coming future.
The Analyst That Thinks BTC Will Reach $135,000
A former institutional investor who has more than 25 years of experience in the financial markets made huge news earlier in the year when he mentioned that he expects Bitcoin to rise to $135,000 by the end of 2021. This analyst goes by the alias of ‘Plan B’ and has constructed his own Bitcoin price model known as the ‘stock to flow’ prediction model which has successfully predicted many trades. This model and his trades have earned him a following of 1.5 million on Twitter.
According to his forecasts, Plan B predicted the price of Bitcoin to exceed $43,000 by the end of September and as we know, the coin did just that. This brings us to one of his boldest predictions to date.
On June 20th, he flaunted his ‘stock to flow’ plan to predict a whopping $135,000 price prediction for Bitcoin by the end of 2021.
He was successful in his price prediction for October as well, as he posted a simple $63K checkmark on his Twitter account to tell us that he has reached his target.
But now this brings us to the main question, why does this same analyst think that we may see an 80% price correction for Bitcoin?
Plan B Predicts BTC 80% Price Fall
After appearing on Anthony Pompliano’s podcast on YouTube, Plan B gave us some worrying news for the future of bitcoin. The interviewer mentioned that although the price may go very high and pass the $135,000 mark that he predicted, historically BTC has faced an 80% correction after performing extremely well in the past. After being asked if this would happen, Plan B had the following to say.
“Yeah, I do think that’s exactly what will happen again. I could be wrong but let me be very clear, I do think that a four-year cycle triggered by the halving is a very real thing. It has to do with the scarcity of Bitcoin and the shortage we are seeing right now.”
He went on to comment more on the current scarcity of Bitcoin. “Bitcoin is traded on exchanges and the exchanges have some inventory of bitcoin, but it is not on-chain transactions. If you look on-chain, the bitcoins that are on cold storage, which are owned by large investors, are clearly experiencing a wave of shortage.”
He goes on to say that we are currently in a period of shortage right now, and it could last for another 3-4 months. This is because Bitcoin has been performing very well in the last 2 months, which has resulted in many whales HODLing a huge amount of Bitcoin. As is the case with a few numbers of wallets holding onto a majority of the coins, the risk of a big sell-off is imminent and something we will be likely to see sometime in the coming years.
As for what the crash could be triggered by, Plan B is not exactly sure. He says that “there will be a crash and it could be as large as the crashes we have seen in the past. We have had 3 crashes of 80% and I see no reason why we can’t have another one.”
So, folks, we know this must be worrying, but the good news is that this is expected to be short-lived, just like we have seen in the past. Plan B has assured viewers that he is still 100% bullish on the longevity of Bitcoin and cryptos.
Bitcoin To Reach $1 million By 2025?
Rather than looking at this from a sceptical point of view, Plan B believes that this crash will be another investing opportunity. “This crash will be short-lived, of course,” he said on Anthony’s podcast, “This would be an excellent opportunity to buy more Bitcoin, but it could be quite scary for newcomers.”
Anthony Pompliano also talked to Plan B about his stock to flow model, which has an ambitious target of over $1 million by 2025. On asking about the likelihood of this happening, the BTC analyst had the following to say. “I really do believe that we have one more cycle to go in the stock to flow prediction, so yeah that would bring Bitcoin into the 1 million to 5 million-dollar range.”
He brings back his original predictions of $135,000 by the end of the year. After that target has been achieved, he thinks FOMO will start to kick in, as we have seen in the past. This is because the crypto market also attracts very impatient investors. The right time to invest in crypto is when the market is boring and not much is happening. This is seen as a period of consolidation before the take-off. But like we have seen in the past month, investors chose to get into bitcoin when it peaked at almost $70K, despite having the chance to buy it for half-off less than 6 months ago.
This is what Plan B thinks will happen once Bitcoin crosses $100K and more. The prices will rise exponentially because the number of users and buyers will increase, which will temporarily raise prices higher. And when these short-term investors decide to cash out again, the price will dip once again and cause the market to go silent for a couple of months.
When Should You Get In?
Although there is no perfect time to get into any cryptocurrency, because the market is so volatile, Plan B thinks people need to be patient. If prices soar like he predicts them to, people should wait for the next halving. This means he wants everyone to wait for a major correction. Although this will probably be hard to do since most tend to run away after a giant correction, but when is there a better time to enter the market than when nobody is buying?
So, do you think Plan B is right about the incoming crash that we may see in the next year? Do you think Bitcoin has the power to reach $135,000 by the end of 2021? Let us know your thoughts and predictions in the comments below.